Factoring Forfaiting Leasing Contact

Factoring

Financing your business during the growth phase can be a real challenge.Cash flow is described as business management tool. 

Leasing

Leasing is one of the most effective ways to finance the purchase of a multi-annual productive factor (vehicles, machinery and equipment for individuals or businesses).

Forfaiting is one of the most suitable forms for financial trade financing. Forfaiting does not limit the effect only in solving liquidity problems, but this kind of instrument influences the management of all risks faced by the exporting companies during the late payment collection.
Forfaiting can be an alternative to export credit or insurance cover, particularly for those transactions in which export credit agency is not open to a certain place and / or bank.

  • It converts deferred payment exports into a cash transaction, improving liquidity and cash flow.
  • It absolves exporter from cross-border political or commercial risk associated with export receivable.
  • It finances upto 100% of the export value as compared to 80-85% financing available under conventional export credit.
  • It acts as an additional source of funding and hence does not have any impact on the exporter’s borrowing limits. It does not reflect as debt in exporter’s balance sheet.
  • It provides fixed rate finance and hence automatically hedges against interest and exchange rate fluctuation arising from deferred export credit.

Advantages of Leasing

Leasing is an ideal way to make an income from an asset without necessarily having its ownership.

Advantages of Factoring

Factoring is an important form of meeting the needs of businesses, for the improvement of working capital.

Advantages of Forfaiting

Forfaiting is one of the most suitable forms for financial trade financing.