Forfaiting, non-recourse discount of bills of exchange and notes

Forfaiting, non-recourse discount of bills of exchange and notes

This product is a specialty and innovation offered by Bank of Africa Europe in the Spanish market. Thanks to our agility and expertise in the African and Middle Eastern markets, we can evaluate your clients with the aim of purchasing their bills without recourse.

This service enables our clients to proceed with their exports, securing 100% of their sales revenue while removing the associated balance sheet risk, which is fully assumed by our bank.

In cases where a documentary credit (L/C) cannot be set up in favour of your customers for an export, our bank can assess the importer and offer the exporter the option to sell the bill without recourse. This is possible if the buyer simply accepts it, and if the importer is a client of Bank of Africa, Morocco, or if the bill is guaranteed by a bank in Africa or the Middle East.

This operation provides exporters with several advantages, which we summarise below:

• We finance up to 100% of the export amount
• Since it is a non-recourse purchase, the exporter completely removes the risk from their balance sheet and writes off the transaction
• The importer significantly reduces their financial costs. Exporters can sell their products more easily and at the same or higher prices
• Exporters can offer importers payment terms of up to 360 days
• In most cases, there is no need to take out export credit insurance, leading to considerable savings in financial costs