Global Trade Finance, India's premier export finance service provider, has become the first Non-Banking Finance Company (NBFC) to obtain the Reserve Bank of India licence to offer forfaiting services. This should be of benefit to those concerned with the export business.
Forfaiting is defined as the discount of deferred credit trade receivables without recourse to the exporter. It is ideally suited for products that require medium to long-term credit, from 180 days to ten years. All international forfaiting agencies forfait only those receivables that have a minimum deal size of US$250,000. The Reserve Bank of India’s granting of a forfeiting licence to GTF means that small and medium-sized enterprise can now also benefit from these services. GTF can now finance small-sized deals at competitive rates, which are more suited to the Indian market.
