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 ?
Enfin, si l'Albiceleste sera presente a Tanger sans Messi, les Lions de l'Atlas joueront quant a eux sans certains de leurs stars dont le meneur d'Ajax Amsterdam, Hakim Ziyech qui a egalement declare forfait pour cause de blessure.
A 48 heures du rendez-vous contre le Nigria dans le cadre des liminatoires du Mondial 2018, le contingent algrien dplore plusieurs forfaits et pas des moindres.
In 2014, the Argus II became the first-ever medical device to be named as the recipient of Forfait Innovation, allowing select hospitals in France to offer this "early access" and innovative treatment to patients with advanced RP.
El forfait diario cuesta unos 50 euros y hay una gran amplia oferta hotelera.
Le forfait de ce pilier des Bleus est un coup dur, d'autant qu'il affaiblit encore un peu plus un secteur interieur deja prive de Noah (blessure a l'aponevrose plantaire), du veteran Ali Traore, touche a un genou, de Kevin Seraphin qui a decide de faire l'impasse pour se reposer, de Ian Mahinmi en froid avec les responsables federaux, et de Ludovic Vaty, contraint de mettre un terme prematurement a sa carriere pour un probleme cardiaque.
It mostly involves business with exporters who have not enough funds to finance a big volume of exportables, so Forfait AG comes to their rescue and provide finance till the exporter gets its consignment delivered anywhere in the world and the responsibility of secured shipment and delivery is taken by the Forfait AG, he clarified.
market over the past decade, but the name, derived from the French, a forfait, has been a barrier for Americans.
Apres leur forfait, ils ont pris la fuite en menacant toute personne qui les poursuivrait.
Etant sponsor officiel de l'equipe nationale, Ooredoo lance le forfait International [beaucoup moins que]Pays Arabes[beaucoup plus grand que] permettant ainsi a ses abonnes de vivre l'ambiance des matchs des Aigles de Carthage et de communiquer depuis la Tunisie vers l'Egypte a moindre cout.
Mini: le montant minimum du march est constitu par le forfait des prestations rgulires figurant sur l~acte d~engagement.
Ainsi, par exemple, pour la banque au quotidien, nous avons adopte une politique de forfait tarifaire qui se veut claire et transparente.
Il s'agit d'un pack prepaye a 49Dt, est compose d'une cle E3131 plus 2 mois du forfait exclusif a 15 Dt/mois plus un volume de 1 Go offert gratuitement tous les jours de 22 H a 8 H.T.