BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Forfaiting is a method of trade finance that allows exporters to obtain cash by selling their medium and long-term foreign accounts receivable at a discount to a forfaiter, a specialized finance firm or a department in a bank.

Detailed explanation-2: -In factoring, once a business sells its accounts receivables to a factor, they are selling 100% of the invoice. In forfaiting, when a business gives up the right to trade receivables to international trade finance companies, they are giving up 100% of their claim on it to the forfaiter.

Detailed explanation-3: -Forfaiting is a method of trade financing. In this process, exporters sell their foreign receivables, either for a long-term or a medium-term, to a forfaiter at a discount. The forfaiter then gets the sum due from the importer on the contracted payment date. A forfaiting transaction occurs on a non-recourse basis.