Mezra Forfaiting –
Advantages of Forfaiting.
ØThe ability to offer supplier credit to importers in more difficult countries at fixed rates;
ØThe ability to realise a cash sale;
ØNo interest rate fluctuation risk;
ØNo credit risk; or credit administration with related costs;
ØNo collection problems at maturity and related costs;
ØSimplicity and rapid execution;
ØPositive effect on balance sheet.
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