Forfaiting

Forfaiting operations provide non-recourse supplier and/or buyer credit financing of trade receivables for exporter and importer clients respectively, typically secured against developing market bank guarantees (standby/documentary letters of credit) or sovereign and large/multinational corporate payment instruments (promissory notes/bills of exchange). Deferred payment financing terms available to exporters/importers can range between 1-5 years thereby providing a complementary commercial financing and non-payment/country default risk solution in addition to official export credit agency (ECA) financing terms/requirements. The Forfaiting unit is also responsible for portfolio management and risk distribution of larger value trade exposures and risk concentration for and on behalf of HSBC Group trade network.