- Owner
- Exporter
- Bank
- Nominated forfaiter
- Basis
- Without recourse, revolving
- Priced on
- Obligor and guarantor standing
Why an exporter would want a program rather than a deal
Forfaiting one shipment is a transaction. Forfaiting every shipment into the same market, quarter after quarter, is an operating pattern — and repeating the whole negotiation each time is what makes it slow. A Program fixes everything that does not change and leaves only the paper to price.
What gets agreed once: the forfaiter, the obligors and countries in scope, the revolving amount available, whether an aval or bank guarantee is required, the currencies, the tenor range, and the document set every purchase must present. What still happens per shipment: the paper is presented and purchased at the agreed basis.
The economics are the same as any forfaiting — a without-recourse sale, so the receivable and its credit risk both leave the balance sheet. The difference is that an exporter running a program knows its cost of selling before it prices the order, instead of finding out afterwards.
The shape of the flow
A facility that refills. Each shipment is presented against a limit that revolves as the forfaiter collects the maturities behind it.
How it works on TradeOrigin
Set the facility up once, then sell each shipment into it.
Start the program
The exporter creates it and nominates the forfaiter that will purchase under it.
Agree scope and limit
Which obligors and countries are in scope, the revolving amount available, the currencies and the tenor range.
Set the security and document list
Whether an aval or bank guarantee is required on the paper, and the document set every purchase must present.
Present each shipment
As paper is created — accepted drafts or notes — it is presented against the program with its documents.
Purchase and revolve
The forfaiter purchases without recourse at the agreed basis; as each maturity is collected, the limit revolves.
Who it is for
Program owner
You ship into the same market repeatedly on extended terms and want the receivables gone each time, at a cost you can quote into your prices.
Named in scope
The buyers and avalising banks whose paper the program covers, agreed at the outset rather than argued about per shipment.
Nominated purchaser
One exporter, a defined obligor set and a repeating document list — diligence done once, then a stream of purchases.
What you get
A cost you know before you quote
The purchase basis is agreed up front, so the financing cost can go into the order price.
Revolving, not one-off
The limit frees up as maturities are collected, so the facility keeps serving the next shipment.
Without recourse every time
Each purchase is a true sale — the receivable and the country risk both leave.
No renegotiation per shipment
Obligors, security and documents are settled at program level.
What the bank will ask for
Uploaded once, against the deal, and visible only to the counterparties on it.
Questions
How is this different from the reverse program?
Who owns it and what sets the price. Here the exporter owns the program and pricing follows the obligor and its guarantor; in the reverse program the buyer owns it and pricing follows the buyer.
Does the limit reset?
It revolves. As the forfaiter collects each maturity, that capacity becomes available for the next purchase.
Can several obligors sit under one program?
Yes — the obligors and countries in scope are agreed when the program is set up, and paper on any of them can be presented.
Related
Forfaiting
Sell medium-term export receivables without recourse and take the risk off your balance sheet entirely.
ProgramForfait Reverse Program
Buyer-initiated forfaiting: the buyer stands up the program and its suppliers are bought out without recourse.
ProgramReceivable Finance Program
A standing arrangement for discounting a buyer’s accepted invoices, with the discounting bank already in place.