Forfaiting

Forfaiting Debt discounting, i.e., purchasing a debt from a trader, an exporter in particular, at a discount. A forfiater buys from an exporter in particular, at a discount. A forfaiter buys from an exporter the bill of exchange or the letter of credit given by a foreign buyer with a maturity period of one to three years. For the price of the discount, which the forfaiter charges, the exporter receives payment immediately and without risk, which is the forfaiter’s.

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