Despite the obvious merits of forfaiting as a financing method in emerging markets, its appeal is far from universal and many exporters, especially smaller ones, still cling to the use of export LCs for a wide range of reasons, such as prohibitively high minimum transaction amounts and pricing. The take-up – or rather lack of take-up – of forfaiting in India is a perfect case in point, as Ravi Mehta, a certified trade specialist and independent export-finance consultant, reports.

Published in Trade & Forfaiting Review September 2004

Source: Trade & Forfaiting Review magazine. Published monthly with a fully accessible online archive and twice-monthly alerts.