Forfaiting Key Points and the Method of OperationSaturday, January 31, 2015
Forfaiting Key Points and the Method of Operation
Extracted Page: https://sblcdiscountinginabad.wordpress.com/2015/01/30/forfaiting-key-points-and-the-method-of-operation/
Forfaiting could be a technique of trade finance that permits exporters to get money by merchandising their medium-term foreign assets at a reduction on a “without recourse” basis. In Forfaiting, receivables are normally guaranteed by the importer’s bank. A forfaiter could be a specialized finance firm or a department in an exceedingly bank that performs non-recourse export funding through the acquisition of medium-term trade assets. Just like resolution, forfaiting virtually eliminates the danger of non-payment, once the products are delivered to the foreign purchaser in accordance with the terms of sale.
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