Rather like factoring for exporters, in that a third party, the agent or forfaiter, purchases a bill of exchange at a discount and collects payment in full from the customer.
The process of purchasing at a discount registered bank "paper" which will mature in the future without recourse to any previous holder of the debt-generated bank paper.
The selling, at a discount, of a longer-term receivable or promissory note of a buyer.
Derived from the French รก forfait which means to surrender or relinquish the rights to something. In return for a cash payment from a forfaiter, an exporter agrees to surrender or relinquish the rights to claims for payment on goods or services delivered to a buyer.
It is a way to finance exports. Forfaiting is a discount without the need for a fixed price on a foreign debt. This debt is represented by bills of exchange or letters of credit if the payment is differed.
A substitute for export credit insurance whereby the exporter's bank buys the debt due in exchange for promissory notes guaranteed by the importer's bank.
The process of purchasing at a discount registered bank paper which will mature in the future without recourse to previous holders of the receivable. Comparable to factoring.
A means of financing international trade wherein an exporter sells their debt obligation of the foreign purchases. Said obligation is usually in the form of a draft or promissory note, which bears a guarantee of the importer's banker.
The purchase, at a discount and on a without recourse basis, of medium-term negotiable instruments by third parties that are not involved in the original transaction.
Forfaiting is the non-recourse sale of lease receivables with a future payment target, preferably to banks and savings banks.
The act of purchasing an exporter's receivables (the amount the importer owes the exporter) at a discount by paying cash. The "forfaiter," the purchaser of the receivables, becomes the entity to whom the importer is obliged to pay its debt.
Forfaiting, or Medium-Term Capital Goods Financing, means selling a bill of exchange, at a discount, to a third party, the forfaiter, who collects the payment from an, essentially, overseas customer, through a collateral bank(s), and, thus, assuming the underlying responsibility of exporters and simultaneously providing trade finance for importers by converting a short-term loan to a medium term one.