Forfaiting: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand. Source: Fiona Crisp's email of 28 October 2016.) |
imported>Doug Williamson (Add link to Supply chain finance page.) |
||
| Line 22: | Line 22: | ||
* [[Promissory note]] | * [[Promissory note]] | ||
* [[Recourse]] | * [[Recourse]] | ||
* [[Supply chain finance]] | |||
* [[Uniform Rules for Forfaiting]] | * [[Uniform Rules for Forfaiting]] | ||
* [[Without recourse]] | * [[Without recourse]] | ||
Revision as of 11:26, 10 February 2017
A process of purchasing a negotiable instrument without recourse to previous holders, the credit of the negotiable instrument normally having been strengthened by the additional of an aval.
A forfaiter, usually a bank or a non-bank financial institution, provides forfaiting services.
The forfaiting agreement sets out the arrangement between the initial seller and the primary forfaiter.
Forfaiting is sometimes known as 'bill discounting'.
One application is the discounting - without recourse - of a promissory note, bill of exchange or letter of credit received from an overseas buyer by an exporter.
