Forfaiting | Practical Law
A Practice Note about forfaiting, a type of trade finance in which an exporter sells a medium-term debt obligation at a discount and without recourse. This Note discusses the structure of a forfaiting transaction and the elements of a forfaiting agreement between the exporter and the forfaiter. It also discusses how forfaiting works, key issues to consider in structuring and negotiating a forfaiting transaction, and the advantages of forfaiting over traditional bank financing.