The reason why we apply different mechanisms of intermediate and long-term trade financing in our work is the buyer's determination to use their own money resources effectively.

Forfeiting resolves a problem of the buyer's lack of disposable funds. The importer's payment obligation is bought out by a forfeiter (a bank or a financial institution) from the seller at cut-rate price, i.e. with a rebate.

The obligation is absolute and non-recourse. At the same time forfeiter takes all the risks of a transaction, i.e. risks in terms of type of the country, currency, interest rate and guarantee's / guarantor's bankruptcy.

Bills of exchange and letters of credit are mostly used in forfeiting operations, as these kinds of obligations are regulated by international normative documents.

Several factors determine the discount rate at forfeiting, namely the risk level in terms of the country, credit risk of the bank that guarantees the transaction and avalizes bills of exchange or issues letters of credit to the importer.

Importers benefit from forfeiting in the following way. Firstly, forfeiters often afford to importers different "bonuses", such as grace period. Secondly, the schedule of payments (as a rule, once in half a year) keeps from drawing big funds, as well as enables to plan payments in advance. Moreover, rates are fixed at the moment of the contract signing, which is especially profitable at the moment of rates increase and within the periods of economic development.

If you are interested in KrAZ vehicles purchase under forfeiting terms, you can approach JSC "FTF KrAZ" for additional information.

2, Yaroslavskiy proyezd Str., Kremenchug, 39631, Ukraine

Phone/fax: +38 (0536) 77-16-73,

office@ftfkraz.poltava.ua