forfaiting

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Forfaiting

A form of factoring that involves selling large, medium to long-term receivables to buyers (forfaiters) who are willing and able to bear the costs and risks of credit and collections.

Forfaiting

In international trade, the selling of an exporter's receivables for a particular transaction. It is similar to factoring except in scope. While a company sells all of its accounts receivable in factoring, an exporter only sells one receivable for one, perhaps high risk, transaction. In forfaiting, the buyer is known as a forfaiter, and assumes all the risks associated with collecting the receivables. Generally, the exporter forfaits the receivable at a discount. This improves cash flow but reduces income.

forfaiting

the provision of finance by one firm (the forfaiter) to another firm (the client) by purchasing goods the client has pre-sold to a customer but for which he has not yet been paid. The forfaiter (which often is a subsidiary of a commercial bank or a specialist firm) buys the client's goods at a discounted cash price, thus releasing ready money for the client to use to finance his WORKING CAPITAL requirements. The forfaiter then arranges to collect the payment when due from the customer to whom the goods have been sold, thus also saving the client the paperwork involved.

Forfaiting extends to both domestic and export sales. It can be especially useful in the latter context in the case of expensive capital equipment involving long delivery dates, and where there are possible complications arising from dealing with relatively unknown customers, exchange rate fluctuations, etc. See EXPORTING.

forfaiting

the provision of finance by one firm (the forfaiter) to another firm (the client) by purchasing goods that the client has presold to a customer but for which he has not yet been paid. The forfaiter (which often is a subsidiary of a commercial bank or a specialist firm) buys the client's goods at a discounted cash price, thus releasing ready money for the client to use to finance his WORKING CAPITAL requirements. The forfaiter then arranges to collect the payment when due from the customer to whom the goods have been sold, thus also saving the client the paperwork involved.
References in periodicals archive ?
Auparavant, la FRMF avait annonce que Mehdi Benatia, recemment transfere au Bayern Munich, et Achraf Lazaar de Palerme, ont aussi declare forfait pour blessures.
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Forfait and the unit prices listed in schedule each lot.
Markets are treated mainly price, and incidentally to purchase orders without minimum or maximum amount of the contract period on the basis of forfait prices and / or unit pursuant to Article 77 of the Public Procurement Code.
Il avait du declarer forfait pour la suite du tournoi, puis pour la fin de saison en club, puis pour la tournee de l'equipe de France en Nouvelle-Zelande en juin.
ETI is currently finalizing the capital procurement/staffing contract with the State of Veracruz and Deutsche Forfait Bank (http://www.
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1 Francais Jo-Wilfried Tsonga a annonce avant-hier mercredi qu'il declarait forfait pour le tournoi ATP de Montreal, qui s'ouvre ce samedi, en raison d'une douleur a un genou datant de Wimbledon.
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DF Deutsche Forfait AG is planning a corporate bond in Deutsche Boerse s Entry Standard.