Trade Finance Loans

Input Application data (Example Name, Address, Contact Details) Scan and index documents.

Process Prepare files for underwriting and coordinate all third party reports with brokers, borrower or client. Review borrower and property information, including all documents and reports, according to the lenders specified guidelines. Prepare closing documents coordinating with closing agents. Review final documents.

Output Trade finance loan

Client OR Borrower

Enter client details 0.0 Trade Finance Client details generated

Validate Client details

Machine For Review

Forfaiting
Input

The purchase of receivables from exporters by a forfaiter. The sale of one of the firm's transactions. The purchase of financial assets.

Working Process of Forfaiting

The exporter approaches a forfaiter before finalizing a transactions structure. Once the forfaiter commits to the deal and sets the discount rate, the exporter can incorporate the discount into the selling price. The exporter then accepts a commitment issued by the forfaiter, signs the contract with the importer, and obtains, if required, a guarantee from the importers bank that provides the documents required to complete the forfaiting. The exporter delivers the goods to the importer and delivers the documents to the forfaiter who verifies them and pays for them as agreed in the commitment. Since this payment is without recourse, the exporter has no further interest in the transaction and it is the forfaiter who must collect the future payments due from the importer.

Output
The forfaiter takes on all the risks associated with the receivables but earns a margin.

DFD
Exporter Payment of document

0.0 Forfaiting Process

LC Issued Acceptance advice For acceptance Payment W/O Recourse

Acceptance advice

Importers Bank

Exporters Bank

Factoring
Input

It is the purchase of a financial asset (the receivable).

Application details (Example Name, Address, Contact Details)

Output Business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. The factor provides financing to the seller of the accounts in the form of a cash.

Working Process of factoring

This service include investigating the creditworthiness of buyers, assuming credit risk and giving 100% protection against write-offs, collection and management of receivables and provision of finance through immediate cash advances against outstanding receivables. When export factoring is carried out by members, the service involves a five or six stage operation.
1. 2. 3.

4. 5.

The exporter signs a factoring contract assigning all agreed receivables to an export factor. The factor then becomes responsible for all aspects of the factoring operation. The export factor chooses an FCI correspondent to serve as an import factor in the country where goods are to be shipped. The receivables are then reassigned to the import factor. At the same time, the import factor investigates the credit standing of the buyer of the exporter's goods and establishes lines of credit. This allows the buyer to place an order on open account terms without opening letters of credit. Once the goods have been shipped, the export factor may advance up to 80% of the invoice value to the exporter. Once the sale has taken place, the import factor collects the full invoice value at maturity and is responsible for the swift transmission of funds to the export factor who then pays the exporter the outstanding balance.

6.

If after 90 days past due date an approved invoice remains unpaid, the import factor will pay 100% of the invoice value under guarantee.

DFD:

Request credit approval Client 0.0 Approve Credit Factoring Obtain Credit Information Buyer