Who knows anything about "Forfaiting"

listonyoung

I have received some information from friends suggesting that I might like to join an investment consortium raising a large amount of money to invest in this opportunity;- CAPITAL ACCUMULATION BY MEANS OF BANK DEBENTURE TRADING (FORFAITING) PROGRAMS, (Reference ICC No, 500 revised 1995)
The returns are high and as far as I can see the money never leaves the bank that you deposit it in!!
Not much on the web about this, but it is either a scam or a means of the very rich becoming super rich

purch

Forfait is not a new concept, in fact it's probably one of the oldest Financial Transactions around.

And yes, much like being a 'name' at Lloyds it is often used as a way for the rich to become richer.

Basically the 'Forfaiter' takes a fee for discounting a piece of security such as a Promissory Note, Letter of Credit or Bill of Exchange in order to expediate a payment between two businesses, often so an exporter of goods can receive payment promptly from whomever imported the goods.

Forfaiting is not a scam as such, but it does mean the 'Forfaiter' assuming a degree of risk, and is not risk free.

Of course anytime you get involved in something like this, and especially join a consortium a high level of caution should be the watch word until you are certain of the legality and honesty of the scheme and your prospective partners.