How to Record ECA Fronting Fees
Accounting for fees paid to a commercial bank for acting as the fronting lender in an Export Credit Agency backed deal.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Trade Finance Expense | Expense | 5,000.00 | - |
| Accounts Payable - Bank | Liability | - | 5,000.00 |
💡 Accountant's Note
Fronting fees represent the administrative cost paid to a bank to interface with the ECA. These are recognized when the service is rendered or the facility is established.
Practitioner & Systems Framework
💻 ERP Architecture
Record as a vendor invoice under the bank's profile in the AP module.
⚠️ Audit Flags
Verification that fronting fees are not double-counted with ECA insurance premiums.
📄 Required Documentation
ECA facility agreement and bank fee letter.
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