INTESA SODITIC
Forfaiting - Our Core Business 

The Philipines
Forfaiting is the term generally used to denote the purchase of obligations falling due at a fixed future date, arising from deliveries of goods and services - mostly export transactions - without recourse to any previous holder of the obligation. The word comes from the French "à forfait" and thus conveys the idea of surrendering rights, which is of fundamental importance in forfaiting.
The obligations are normally evidenced by freely negotiable debt instruments - Bills of Exchange, Promissory Notes, Letters of Credit or Receivables and usually guaranteed by an acceptable bank in the Importer's country. These obligations or trade receivables are predominantly purchased from an exporter on a without recourse basis at a predetermined rate of discount.
The discounting of the trade receivables will take place shortly after shipment of the relevant goods under the supply contract, irrespective of the credit period which has been granted to the importer, thus providing the exporter with enhanced cash flow on a without recourse basis, whilst the importer receives the credit period agreed under the supply contract.
The discounting of trade receivables without recourse to the Exporter provides the Forfaiter with a freely negotiable debt instrument which can either be placed in the Forfaiter's own portfolio or sold by the Forfaiter to an investing institution in the secondary Forfaiting market.
Please click here to see the typical flow of forfaiting transactions