ManagementMania AppMania EduMania JobMania BusinessPages


What is Forfaiting
Forfaiting is a term that refers to redemptions (onerous assignment) outstanding receivables that are secured by a bank guarantee, avalised bank bill or documentary letter of credit with deferred payment.

Forfaiting is a term that refers to redemptions (onerous assignment) of outstanding receivables that are secured by a bank guarantee, avalised bank bill or documentary letter of credit with deferred payment. Specialized forfaiting companies perform the buyout of receivables without the possibility of recourse to the supplier if the customer does not pay. Forfaiting is one of the short, medium and long-term forms of financing.

There is a secondary market for forfaiting operations (e.g. in London), in which a forfaiter can resell them.

The advantage of forfaiting is the opportunity to receive cash payment shortly after delivery, to transfer monetary, exchange and other risks in forfaiter, and the ability to offer customers deferred payment.

The downside is that forfeiting is more expensive than a traditional bank loan, but for indebted firms it may be more accessible.

Use of forfaiting in practice: Forfaiting is used by contractors who have an agreed payment term with the customer with deferred payment. This is used mainly by companies supplying foreign suppliers. Forfaiting transactions are negotiated individually (i.e. each transaction).

Forfaiting scheme

Related terms and methods:

Related discipline:

Related management field:

previous next
Did this article help you?
Rating:
Last update: 18.08.2016

Comments

Rodman man over 1 year

I am so greatful here for this site, this site here is way better than the previous one at edubirdie.org and its so much helpful too, so kudos to you guys for actually getting better than before as well !!

Was this helpful?
Rating:
Christina Beck 6 months

Wow! Such an amazing and helpful post this is. I really really love it. It's so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also. international call forward

Was this helpful?
Rating:
Christina Beck 5 months

Regular visits listed here are the easiest method to appreciate your energy, which is why why I am going to the website everyday, searching for new, interesting info. Many, thank you! tempemails.net

Was this helpful?
Rating:
Christina Beck 5 months

Any time you are browsing the net sometimes I have discovered a website that's rather thought invoking such as this one. Frequently that I have been to this particular web site I have took pleasure in the nice content here. I shall be sure to look out for the following article.. Many thanks for the fantastic post I am going to revisit in the future. metal parts

Was this helpful?
Rating:
Christina Beck 4 months

Hardwood flooring company in Alpharetta GA offering refinishing, installation and restoration. hardwood floor installation

Was this helpful?
Rating:
Christina Beck 4 months

Manifest Thy Will The Most Powerful Black Magick Spells On Earth www.ManifestThyWill.com I am the Master of the Dark Arts. I carry out rituals and cast spells, I help people in a dead end situation, when other spell casters are unable to do anything. Visit me and I will help you solve your situation and finally get it back on track! Manifest Thy Will

Was this helpful?
Rating:
Christina Beck 4 months

This is an interesting post that I'll like to share with you garden residences balance units chart

Was this helpful?
Rating:
Christina Beck 4 months

This is an interesting post that I'll like to share with you amber park balance units chart

Was this helpful?
Rating:
Christina Beck 4 months

This is an interesting post that I'll like to share with you parc clematis balance units chart

Was this helpful?
Rating:
Christina Beck 4 months

Excellent read, Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. 결혼정보회사

Was this helpful?
Rating:
Christina Beck 4 months

Listed here you'll learn it is important, them offers the link in an helpful webpage: 바둑이사이트

Was this helpful?
Rating:
Christina Beck 4 months

Why do only so much written on this subject? Here you see more. check

Was this helpful?
Rating:
Christina Beck 4 months

For many people this is the best solution here see how to do it. 해운대고구려

Was this helpful?
Rating:


To enter the discussion you must be signed in

Sign in


Related consulting companiesmore...