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Forfaiting

Export
Ceramic Products
From United Arab Emirates
To Afghanistan
18 views / 0 experts
Kerim A.
Sep 30, 2021

What Is Forfaiting? 

1 answer

Jasmine G.
Sep 30, 2021

Forfaiting is a means of financing that enables exporters to receive immediate cash by selling their medium and long-term receivables—the amount an importer owes the exporter—at a discount through an intermediary. The exporter eliminates risk by making the sale without recourse. It has no liability regarding the importer's possible default on the receivables.
The forfaiter is the individual or entity that purchases the receivables. The importer then pays the amount of the receivables to the forfaiter. A forfaiter is typically a bank or a financial firm that specializes in export financing.

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