Forfaiting & Loan Trading
[sample bank name] started its Global Forfaiting and Loan Trading business in 1997 and is today one of the major players in this area. We are active in the secondary market for trade-related and financial assets, with a strong focus on emerging markets.
Our department trades in a wide range of instruments, including syndicated loans, promissory notes, bills of exchange, letters of credit, and corporate loans. We are a member of the International Trade and Forfaiting Association (ITFA) and the Loan Market Association (LMA).
Core Business Areas
Loan Trading
[sample bank name] is an active player in hard currency LMA structured loans to the financial institutions sector. We participate as an original lender or via purchase in the secondary market.
Forfaiting
A method of trade finance where we purchase debt obligations arising from the supply of goods or services on a without-recourse basis, protecting the exporter from financial risk.
Advantages of Forfaiting
Forfaiting is a tailor-made financing solution designed according to the specific needs of the exporter:
- 100% financing without recourse to the exporter
- Eliminates political, transfer, and commercial risk
- Protects against interest rate and exchange rate fluctuations
- Enables business in high-risk countries
- Simple documentation and fast conclusion of transactions
Asset Characteristics
Trade-related assets offer several benefits for financial institutions:
Liquid Assets
Credit lines can be freed in a short time if needed.
Attractive Yield
Trade-related assets often have better returns than syndicated loans.
Simplicity
Uniform documentation eliminates excessive legal costs.
Flexibility
Tenors typically vary from 6 months to 5 years.
Contact us
[sample bank name] N.V.
Address
[sample address]