Forfaiting business charges include discount interest, commitment fee and grace period discount, and the specific charges are agreed in the contract. Discount interest is calculated from the face value at a certain discount rate.

Forfaiting, also known as buyout, refers to the non-recourse financing of accounts receivable after the issuing bank, confirming bank or other designated banks make a commitment to pay the money under the letter of credit according to the requirements of customers (beneficiaries of the letter of credit) or other financial institutions.