Bank of China (Canada) (BOCC) Forfeiting
no fixed amount
Forfeiting, Trade Finance
Description:
Under a forfeiting arrangement, Bank of China (Canada) purchases the outstanding claims resulting from goods, services or capital goods transactions without recourse to the client. Usually such outstanding claims have been accepted/avalized to make payment by financial institutions.
Comments on Funding:
Funding is through forfeiting, which can take the following forms:
1. Usance L/C forfeiting:
– Bank of China (Canada) purchases non-recourse outstanding accounts receivable confirmed/avalized by the issuing bank in terms of a negotiated, accepted or deferred payment L/C.
2. Sight L/C forfeiting:
– Using a sight negotiable L/C, Bank of China (Canada), as the nominated negotiating bank, purchases accounts payable of the issuing bank without recourse as long as documents are consistent with L/C terms.
3. Forfeiting under D/A:
– Under D/A (documents against acceptance) Bank of China (Canada), at the customer’s request, purchases accepted commercial drafts avalized by a bank without recourse.
Continuous Intake
Eligibility:
Businesses can benefit from this type of products:
1.Clients who have limited working capital and need to accelerate the turnover rate of their accounts receivable.
2.Clients who seek to mitigate credit, sovereign, interest rate and exchange rate risks underlying longer-term accounts receivable.
3.Clients who have insufficient or no credit lines with banks.
Application Steps:
For inquiries, applicants must call BOCC’s service hotline: 1-844-669-5566.
Documentation Needed:
No specific documentation has been identified.
Other Things to Note:
About the author
Maurice
