Okuzeka
Finance & Banking vocabulary · Trade Finance

Forfaiting

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, forfaiting means: Purchasing export receivables without recourse for the buyer's non-payment, commonly involving medium-term obligations.

In Turkish: forfaiting, forfeyting

How it is used

Distinguish the term from general invoice factoring; it often concerns documented export payment obligations.

Example sentences

  1. The machinery exporter used forfaiting to receive cash before the instalments matured.

    Selling deferred export claims brings forward receipt of cash.

  2. The forfaiting proposal required a bank-backed payment obligation.

    The purchaser assesses the strength of the receivable and its backing.

Common collocations

  • forfaiting transaction
  • forfaiting discount
  • factoringA form of financing in which a company sells its unpaid invoices to a factoring company or bank at a discount and receives cash before its customers pay.
  • trade financeBanking products that help importers and exporters pay and get paid safely, and that finance goods while they are produced, shipped or sold.

More terms: Trade Finance

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This page explains English vocabulary for learners. It is not financial advice.