Tags: Bankers Association for Finance and Trade (BAFT), Geoff Wynne, International Trade and Forfaiting Association (ITFA), Master Participation Agreement, Mater Risk Participation Agreement, Sullivan & Worcester Credit holdings can also create value for the original lender, especially in a situation where the borrower is in trouble. This value is created by creating a market to sell the economic interest on the loan between the lender and the borrower, while the lender remains the record owner of the loan. This is important for the lender in maintaining a relationship with his client. On the other hand, when syndicating credit, a borrower concludes a single credit agreement with a group of lenders. This individual credit agreement covers all credit facilities made available to the borrower by the various lenders. Each of the lenders in a syndicated loan has a direct legal and contractual relationship with the borrower. However, in most cases, one of the lenders may act as an agent on behalf of the various lenders who have granted credit to the borrower. Sometimes there may be more than one agent who plays a particular role in the credit agreement, for example.B. one agent could be entrusted with administrative functions related to the credit facility and another agent would be responsible for the obligation to securitize the loan and take guarantees on behalf of the other lenders. Typically, in the case of a syndicated loan, the administrative officer is responsible for managing the loan on behalf of the other lenders, including managing the communication between the borrower and the lenders and the payment of the loan to the borrower.
The package, also known as trade forfaiting, is a way to raise cash in trade finance, where exporters receive cash by selling their foreign receivables (medium and long term) at a discount and on a “no recourse” basis. Without recourse or non-recourse, this essentially means that the packager takes and accepts the risk of non-payment. In this case, a flat-rateer is a specialized financial institution or banking department that carries out non-recourse export financing by purchasing medium- and long-term receivables from an exporter`s supplies and services. In this case, a risk equity framework agreement may be used to transfer to a participant a lender`s shares in receivables from a borrower`s deliveries and services. At the time of the package, a borrower`s claims are usually guaranteed by the participant, the importer`s bank. . . .