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Investments glossary

Forfaiting


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Quotes of the day:

a good tooth, gets no gold

— Severin Meiland

Forfaiting is a means of financing that enables exporters to receive immediate cash by selling their medium and long-term receivables—the amount an importer owes the exporter—at a discount through an intermediary. The exporter eliminates risk by making the sale without recourse. It has no liability regarding the importer’s possible default on the receivables.

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