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What is Understanding Forfaiting in Finance about?
Forfaiting is a form of international supply chain financing that involves discounting future payment obligations on a without recourse basis. It can be applied to trade receivables and other financial receivables with maturities typically between 3 to 5 years. Forfaiting provides 100% financing of receivables without recourse to the original seller, and the discounted debt obligations can range in value from $100,000 to $200 million.
- Author
- riyasacademic
- Language
- EN