Assignment of Receivable under Letter of Credit (L/C Forfeiting)About Product

Product description

Assignment of Receivable under Letter of Credit (L/C) is a financing solution for exporters. The bank forfeits a receivable under a deffered- payment L/C without recourse to the assignor (L/C beneficiary). The financing bank bears the risk of a default, the exporter obtains cheap financing based on third party risk (issuing or confirming bank's risk), which is free from payment, territorial, interest and exchange- rate risk for him.