Forfaiting is enunciated when a corporate sell the Bill of Exchange (BoE) on without recourse basis to a forfeiter (bank) based on a co-acceptance by an Avalising Bank. However, this is currently a very manual process where multiple documents and emails are exchanged between various stakeholders such as Corporate, Avalising bank and Forfaiting bank.
Some of the key factors affecting are:
Digitally connecting Corporate, Avalising bank and Forfaiting bank via the platform to enhance collaboration and visibility using new generation technologies. A real-game changer with Traceability, and reduction in costly delays. The process becomes paperless with the platform. They are expected to have a profound impact on how businesses transact and participate in global transactions with integrated offerings.
Banks and Financial Institutions run their current forfaiting process involving multiple parties typically in a paper-intensive manual process manner.
Organizations are facing disruptions in their cash flows on account of delays in receipt of funds.
Current business climate demands streamlining of cash flows as a critical business requirement.
Banks/FIs are moving digital with higher automation, greater visibility, increased profitability and revenue opportunities.
The lack of visibility in forfaiting process leads to inefficiencies and thereby reducing the revenue generation opportunities for the banks.
The forfaiting process is a complex process covering multiple organization with heavy documentations.
Key customers demands a time-efficient process and wants to remove manual tasks and delays that significantly impact the business revenue and profitability.
Our state-of-the-art blockchain-based platform provides a smoothened and streamlined MFA (Master Facility Agreement) management process, Offer and Acceptance process, involving Corporate, Forfaiting bank and Avalising Bank. This App enforces reduced cycle times and enhanced user efficiency eliminating time-consuming manual tasks.
The app also enhances greater real-time collaboration across stakeholders in a multi-party environment with tamper-proof record of transaction documents and data with auditability.
“We are thrilled to have launched our blockchain operations with our partners, dltledgers. We see the potential to revolutionise how we finance cross-border transactions at the bank. Not only will it impact our bottom line, but it will enable us to reduce processing time, be more responsive to our clients, and de-risk transactions.”
– Michael Awori, CEO, Trade Development Bank (TDB), Group, Burundi, Africa