![]() |
![]() |
|
New Trade Agreements New trade agreements, such as the Central American Free Trade Agreement (Cafta) and the upcoming Free Trade Agreement of the Americas (FTAA), will pose new challenges to exporters doing business in the region. The increasing need to provide supplier credit in a riskier operational environment will require a careful balance between risk management and profitability Exporters: Sell Your Negotiable Instruments on a "without recourse" basis. Exporter's Dilema 1. Limited Capacity to hold receivables Eliminate Cross Border Risk We sell your negotiable instruments or arrange local bank financing to qualified buyers without recourse to you, turning them into readily available cash. Know before you ship if you will be able to sell your negotiable instruments, and most importantly, know the price so that you can pass on the cost or share it with your buyer. What is Forfaiting? Forfaiting is the discounting of International trade receivables (Negotiable Instruments) on a "without recourse" basis to the seller/exporter. Negotiable Instruments Include: 1. Bill of Exchange accepted by qualified importer |
| Website created by E-Gen Advertising |