Forfaiting Rate Calculator
Discount receivables (avalised drafts, deferred LCs, promissory notes) on a without-recourse basis. Applies banker's discount, commitment fee and documentation cost to derive net proceeds and effective yield.
| Face value | $1,000,000.00 |
| − Discount (7.5% × 180/360) | −$37,500.00 |
| − Commitment fee | −$416.67 |
| − Documentation fee | −$1,500.00 |
| = Net proceeds | $960,583.33 |
Overview & methodology
Banker's discount vs. effective yield
Forfaiting quotes are typically banker's discount on the face value. The effective yield the forfaiter earns on the cash actually paid is higher, because the discount is deducted upfront. This tool reports both so exporters can compare a forfaiting quote against alternative financing (usance LC discount, receivables factoring, or PXF).
Frequently asked questions
What is forfaiting and how does it differ from factoring?
Forfaiting is the without-recourse purchase of medium-term export receivables (usually bills of exchange or promissory notes backed by an aval or LC). Factoring is typically short-term, with recourse, and covers open-account receivables. Forfaiting shifts credit, transfer and political risk to the forfaiter.
How is the forfaiting discount rate quoted?
As a straight discount or discount-to-yield over the reference rate (SOFR, EURIBOR, SONIA) plus a margin covering country and bank risk (typically 100–400 bps). Days are counted ACT/360 for USD/EUR, ACT/365 for GBP.