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imported>Doug Williamson |
imported>Administrator |
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| 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.
| | Securities that pay interest at a specified rate either at periodic intervals or at maturity - unlike discount instruments, where the return is earned by the increase in value to the redemption amount, from the discounted amount of the initial investment. |
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| A forfaiter, usually a bank or a non-bank financial institution, provides forfaiting services.
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| The forfaiting agreement sets out the arrangement between the initial seller and the primary forfaiter.
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| Forfaiting is sometimes known as 'bill discounting'.
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| 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.
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| Forfaiting purchases qualified, select, individual transactions (in contrast with factoring which normally purchases all of a firm's receivables).
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| == See also == | | == See also == |
| * [[Aval]] | | * [[Discount instruments]] |
| * [[Bill of exchange]]
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| * [[Bill discounting]]
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| * [[Factoring]]
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| * [[ITFA]]
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| * [[Negotiable instrument]]
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| * [[Promissory note]]
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| * [[Recourse]]
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| * [[Supply chain finance]]
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| * [[Uniform Rules for Forfaiting]]
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| * [[Without recourse]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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| [[Category:Liquidity_management]]
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| [[Category:Trade_finance]]
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Revision as of 14:19, 23 October 2012
Securities that pay interest at a specified rate either at periodic intervals or at maturity - unlike discount instruments, where the return is earned by the increase in value to the redemption amount, from the discounted amount of the initial investment.
See also
