Better known as „Deferred Payment Letter of Credit“, forfeiting was originally developed for Croatian exporters. It implies the purchase of debt instruments and receivables, without right of recourse. To qualify for purchase, receivables must be irrevocable, unconditional and transferrable and the purchaser (forfeiter) purchases 100% of the receivable amount reduced by discount and contracted fee.
Who is it intended for?
It is intended for legal persons having outstanding receivables towards foreign buyers.
- Country risk, payment risk and exchange rate variation risk hedging
- Cashing the receivables falling due during the longer time period
- Speeding up cash flow that enables further sale growth
- Improvement of liquidity indicators, financial stability and indebtedness
We can purchase only those documentary letters of credit with deferred payment which are domiciled (collectible) at Splitska banka. .