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D/A Forfaiting

D/A forfaiting is an international exporter–financing arrangement for documents against acceptance (D/A) arrangements. It allows the exporter to receive up–front payment for selling trade–related bills at a discount and can be used for short–term liquidity as a limited–recourse or non–recourse financing.

Structure of a Typical D/A Forfaiting Arrangement

Structure of DA Forfaiting

Benefits of D/A Forfaiting

Risk hedging

  • Hedge the commercial and country risk of the importer

Improving balance sheets

  • Eligible for off–Balance sheet treatment, subject to consultation with your professional accountant, tax and legal advisors

Legal assurance

  • No steps for perfection against obligor and third parties will be required subject to the laws of importer’s country and of export contracts.

Notice

  • The use of the above products or services is contingent upon the credit assessment in accordance with Mizuho Bank’s prescribed procedures. As part of this assessment, you may be required to submit certain documents.
  • Fees may be charged for using these products or services.
  • Please consult an attorney, accountant, or tax accountant regarding any legal matters, accounting issues, or taxation concerns.