Definition:

Discount without recourse to the exporter of L/Cs or drafts accepted by Citibank^® or other banks (need to be asked for approval). A type of export financing in which the funds advanced to the exporter do not affect his credit line.

Advantages:

	The exporter can give financing terms to customers without an impact on cash flow.
	The exporter obtains funds in advance without affecting their credit line. This type of financing can also be obtained by non-credit customer.
	The exporter minimizes sovereign and commercial risk from the importer and from the issuing/accepting bank.
	In some cases, Citibank® can discount on a non-recourse basis the drafts accepted by an importer and assure his risk, when this importer is a customer of the bank.

Costs:

Spread over a base rate or fixed rate for the term remaining until the maturity of the L/C of draft(s)

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