Secondary Market of Forfaiting: Purchase From Other Banks

Purchase from Other Banks in Secondary Market of Forfaiting refers to the service that CEXIM, as a buyer in the secondary market of inter-bank trade finance, buys a payment claim which is sold by other banks and has been accepted/undertaken by the obligor to pay in future, thus taking the risk of the obligor accordingly. 


This inter-bank cooperation enables banks to sell receivables they hold so that they can reduce risk-weighted assets, improve capital adequacy ratio, satisfy relevant regulatory requirements, release credit facilities, and collect funds in advance. 


The seller should provide the following documents: documents about underlying trade, payment claims and guarantee of payment; relevant agreements; etc; 

The purchase price should be determined by both parties based on the principle of mutual benefit.