Home > Term: forfaiting
forfaiting
A method of purchasing medium term claims whereby the purchaser waives any entitlement to enforce the claim against its original owner. Forfaiting is normally used as a method of export financing, with an exporter selling a claim for receivables against an importer to a third party, thereby converting a sale on deferred payment terms (between 1 and 5 years) into a sale against cash payment.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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