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Forfaiting

Product Name

Forfaiting

Description

Forfaiting services are provided by Bank of China Limited Macau Branch. Forfaiting means that Bank of China purchases the outstanding claims resulting from goods, services or asset transactions without recourse. Usually the outstanding claims have been accepted/undertaken/avalised to make payment by financial institutions.

Features

1. Purchase without recourse. Bank of China purchases accounts receivable without recourse to secure customer's accounts receivable;

2. Mitigate risks. Customers transfer such risks as nation risk, credit risk, exchange rate risk and interest rate risk to Bank of China with the purpose to mitigate risks;

3. Not occupy the customer's credit line. One advantage of forfaiting is that it doesn't occupy the customer's credit line. The customer can still get financing from Bank of China without credit line or with insufficient credit line;

4. Increase working capital. Customers obtain 100% financing, turning the future accounts receivable into current cash flows so as to avoid capital occupation and increase cash flow;

5. Optimize the financial statements. Customers can reduce accounts receivable and improve cash flows without increasing liabilities, so that the financial statements can be optimized.

Target Customers

1. Customers who have limited working capital and need to accelerate turnover rate of accounts receivable;

2. Customers who want to mitigate the credit risk, nation risk, interest rate risk and exchange rate risk faced by the long-term accounts receivable.

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