(Without recourse financing of credit resulting from deferred payments related to exports)

This is the cornerstone activity of R&M which deploys its equity.

It involves purchasing, without recourse, payment commitments given by the importer to the exporter related to an order regulated through deferred payment.

Operating on its own portfolio, the company buys marketable assets and those close to maturity as well as those of a reduced amount, which are therefore not tradable on the market.

• International bills (so-called promissory notes);
• International bills of exchange;
  NB: (as a rule, the bills are guaranteed by an aval or by separate guarantee – with intervention of the importer’s bank);
• letters of credit with extension beyond 60 days;
• letters of guarantee.

These are the typical instruments used at present. In any event assessment on a “case by case” basis aimed at seeking an ideal solution for the purpose falls within the sphere of R&M’s core business activities.

BENEFITS OF FORFAITING

For the exporter:

• total elimination of the trade, political, exchange and transferability risk;
• elimination of recourse to the banking system, with related improvement in liquidity;
• elimination of credit administration;
• total (100%) freeing up of capital and interest;
• possible SIMEST subsidy, when eligible;
• offer to foreign client of payment extensions, with immediate collection of the credit.

For the importer:

• access to credit in countries where it is difficult and/or excessively too expensive to raise short/medium-term funding for imports;
• choice of payment currency, free from motivations other than optimisation of the handling of the finances;
  
• access to fixed-rate credit.