Forfaiting is the discounting of trade receivables on a without-recourse basis.

It is a highly effective finance tool which allows an Exporter / Seller to grant attractive credit terms to his buyers without tying up cash flow or assuming the potential risks of late payment or default. It also protects him against adverse movements in interest and / or currency rates during the credit period.


Benefits Of Forfaiting

In many countries, particularly in the emerging markets, providing extended payment terms will greatly improve the chances of winning a contract. Obviously, most Exporters would much prefer being paid in cash, without exposing themselves to the costs and risks associated with providing financing to their clients. Forfaiting allows the Exporter to meet these needs without taking any additional risk.

With MF support, the Exporter can provide deferred payment financing as a part of the sales proposal or quotation, thereby anticipating the Buyer's needs. Furthermore, by focusing the negotiation on the credit terms offered, the Exporter may face substantially less pressure to reduce the price. That in turn, may mean better sales margins and higher profitability.

Benefits to Exporters

The main benefits offered by forfaiting solutions to exporters are the following:

The Exporter is paid cash, thus ensuring an enhanced cash-flow and a stronger balance sheet.

Up to 100% of the contract value may be financed without recourse. There is no minimum down payment requirements and there is no risk retention by the Exporter.

The Exporter is protected from late payments and defaults resulting from political, credit, and transfer events.

The Exporter is also protected from adverse movements in interest and foreign exchange rates.

The Exporter eliminates the administration required to collect the amounts due.

The Exporter may be able to obtain pre-shipment financing from its banks, against a commitment from Marvel Forfaiting to discount the receivable without recourse.

The Exporter may have a significant commercial advantage over competitors who do not use forfaiting and who, therefore, may not be able to offer medium- or long-term supplier credit financing.

There are virtually no restrictions on the type of product, commodity or service which can be financed and there are no limitations on foreign content.

The Exporter can use forfaiting in conjunction with numerous Government export credit programs and may be able to access local export subsidies where available.

The Exporter keeps direct contact with the Importer and guides all the financial and commercial discussions through to the signing of the contract.

Marvel Forfaiting can fix interest rates up to 18 months in advance of a shipment date, protecting the Exporter from increases in interest rates, during the manufacturing and delivery period.

Repayment terms can be structured to meet the Buyer's cash-flow needs, including grace periods.

Export Credit Agencies and Forfaiting

Forfaiting offers Exporter’s flexibility within a simple structure and increases their ability to win business in competitive international markets. Forfaiting can be applied as a standalone finance package or it can be used in conjunction with officially supported credits backed by Export Credit Agencies (ECA's) such as Export Credits Guarantee Department in the UK, Euler Hermes in Germany, SACE in Italy, COFACE in France and Ex-Im Bank in the USA.

Used on its own, forfaiting's flexibility enables Exporters to offer their clients financing for up to 100% of the contract value, whereas ECA backed finance is mainly restricted to only 85% of the value of the goods being supplied.

Used in conjunction with ECA backed credits, forfaiting can be used to finance the uncovered portion of the transaction, including the down payment or any ineligible foreign content. Marvel Forfaiting has extensive experience working directly with exporters in providing financing solutions. Alternatively, it can work with the bank nominated to arrange the ECA backed credit.


MF can offer loans to its clients on bilateral basis or jointly with other lenders.


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