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 ?
The largest include WestMerchant Bank, London Forfaiting Corporation, Standard Bank of London, Finanz AG Zurich and Bank of America.
com), the world's first online marketplace for real-time trading of accounts receivable, today announced that it has joined the International Forfaiting Association (IFA) as an Associate Member.
The four-day training will start with the Advanced Structured Trade Finance Seminar on 10 and 11 November, followed by a two-day workshop focusing on factoring, forfaiting and supply chain finance as means of financing receivables.
As for Lot 4, the contract relates to the obligation on the part of the Administration and Contracting dell~affidatario to conclude within 15 (fifteen) days from the date of signing of this contract, a public act Forfaiting the aforementioned tax credit, all as more fully described in the Tender Rules and in the Special Contract.
Prior to that, he was Managing Director of London Forfaiting Company ("LFC"), Hong Kong, a subsidiary of a UK listed non-bank financial institution.
In particular, companies reported a lack of familiarity with innovative or less common trade finance products, such as supply-chain financing, bank payment obligations and forfaiting.
At March 31, 2007, ENAP reported total financial debt of US$974 million plus US$4 million of forfaiting (receivable financing), resulting in leverage on a last 12-months (LTM) basis, as measured by Debt to EBITDA, of 2.
BT is consistently profitable, generates positive FCF and has a limited amount of outstanding debt, although its use of factoring and forfaiting is substantial.
Simmons & Simmons advised Orion Mine Finance and Fusion Capital on their joint venture and original acquisition of the mine from Solway Industries in 2015, on the offtake arrangements for the project and also subsequently advised Lynx Resources on the $75m debt raise for the mine, financed by leading project finance lenders Socit Gnrale and Investec, and Macedonian lender Ohridska Banca (which was recognised by Trade & Forfaiting Review as one of their Deal of the Year winners for 2016 and was shortlisted for the IFLR European Awards 2017 as Project Finance Deal of the Year).
Dubai Multi Commodities Centre (DMCC), the authority on trade, enterprise and commodities in the emirate, said it has signed up FIMBank, a leading provider of trade finance, factoring and forfaiting solutions, as a member to its Tradeflow platform.
DMCC, the authority on trade, enterprise and commodities in Dubai has welcomed FIMBank, a global provider of trade finance, factoring and forfaiting solutions, to its DMCC Tradeflow platform by signing a membership agreement at its Almas Towers headquarters.
Credito documentario irrevocable confirmado (credito es irrevocable cuando, una vez abierto, no puede ser modificado o cancelado sin el consentimiento expreso de todas las partes que en el intervienen) factoring, forfaiting, cotizar con clausulas E o F, diversificar compradores, mercados, celebrar contrato compra venta internacional, trabajar con bancos de primera linea.