Start the New Year with new rules
On the 1st of January the new ICC Uniform Rules for Forfaiting (URF) came into effect. The rules were developed by the ICC Banking Commission in collaboration with international Forfaiting Association (IFA).
The URF was created to provide a standard set of rules that reflect a broad consensus among bankers, users and all members of the forfaiting community worldwide. The rules will govern a market estimated of £200billion a year.
The forfaiting industry can accommodate and provide finance for a range of financial instruments and can be used to enable exporters to provide attractive sales terms to their buyers. The URF—the very first set of rules for the primary and secondary markets—establishes clear rules and procedures for both corporates and financial institutions engaged in forfaiting.