Forfaiter

Purchaser of promises to pay issued by importers. The New York Times Financial Glossary

* * *

forfaiting for‧fait‧ing [ˈfɔːˌfeɪtɪŋ ǁ ˈfɔːr-] noun [uncountable] FINANCE
when a specialized financial institution buys the debt to an exporter on or shortly after the delivery of goods to an importer:

• With forfaiting, we can provide liquidity and remove the political and credit risks for local exporters.

— forfaited adjective [only before a noun] :

• He advised investors to buy forfaited paper (= debts related to exported goods ) .

— forfaiter noun [countable] :

• Specialist forfaiters have begun to finance significant trade deals in Kazakhstan.


Financial and business terms. 2012.

Look at other dictionaries:

  • forfaiter — Purchaser of promises to pay issued by importers. Bloomberg Financial Dictionary ( primary) forfaiter An individual or financial entity that arranges a forfaiting transaction directly with an exporter and then holds or sells on the payment… …   Financial and business terms

  • forfaiter — forˈfaiter noun A person who, or company which, buys and sells such debts • • • Main Entry: ↑forfaiting …   Useful english dictionary

  • primary forfaiter — An individual or financial entity that arranges a forfaiting transaction directly with an exporter and then holds or sells on the payment obligations of the importer/ guarantor. Bloomberg Financial Dictionary …   Financial and business terms

  • secondary forfaiter — An individual or financial entity that buys or sells the payment obligations of the importer/ guarantor. Bloomberg Financial Dictionary …   Financial and business terms

  • Forfaiting — In trade finance, forfaiting involves the purchasing of receivables from exporters. The forfaiter will take on all the risks involved with the receivables. It is different from the factoring operation in the sense that forfaiting is a transaction …   Wikipedia

  • Forfaiting — The purchasing of an exporter s receivables (the amount importers owe the exporter) at a discount by paying cash. The forfaiter, the purchaser of the receivables, becomes the entity to whom the importer is obliged to pay its debt. By purchasing… …   Investment dictionary

  • forfaiting — Fin the purchase of financial instruments such as bills of exchange or letters of credit on a nonrecourse basis by a forfaiter, who deducts interest (in the form of a discount) at an agreed rate for the period covered by the notes. The forfaiter… …   The ultimate business dictionary

  • forfaiting — The supply of fixed rate, without recourse trade finance through the discounting of bills of exchange (bill of exchange) or promissory notes (promissory note). The bills of exchange or promissory notes will typically have been issued as deferred… …   Law dictionary

  • 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. Bloomberg Financial Dictionary * * * forfaiting for‧fait‧ing… …   Financial and business terms

  • forfaited — forfaiting for‧fait‧ing [ˈfɔːˌfeɪtɪŋ ǁ ˈfɔːr ] noun [uncountable] FINANCE when a specialized financial institution buys the debt to an exporter on or shortly after the delivery of goods to an importer: • With forfaiting, we can provide liquidity… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.