--%>
Assignment Help - homework help

What is forfaiting transaction

What is meant by the forfaiting transaction?

E

Expert

Verified

Forfaiting is the form of medium-term trade financing which is used to finance the sale of capital goods. A forfaiting transaction includes sale through exporter of the promissory notes which is signed by the exporter in favor of importer.  The forfait, generally a bank, purchases notes at the discount from face value.  Forfait not have recourse against the exporter in event of default by importer. Promissory notes normally extend out in series over the period of three to five years, with a note in series which gets matured in every six months.

   Related Questions in Financial Accounting

  • Q : Purpose of foreign branch bank Discuss

    Discuss the purpose of the foreign branch bank.

    		•
  • Q : Market participants in foreign exchange

    Who are market participants within the foreign exchange market?

    		•
  • Q : Goals of Social Democrats What were the

    What were the goals of Social Democrats? What did Anarchists want?

    		•
  • Q : Ppe Question 3 The following

    Question 3 The following information is taken from the financi al statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had

    		•
  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

    		•
  • Q : Case study of a global economy The

    The economic recovery is seemingly on track and in fact strengthened during the first half of 2010. The global financial market however, suffered a setback with the turmoil in sovereign debt markets leading to sharp currency movements. The extent of recovery varies ac

    		•
  • Q : Evaluated Receipt Settlement What do

    What do you mean by Evaluated Receipt Settlement?

    		•
  • Q : Help Otobai Motor Company is currently

    Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%.

    		•
  • Q : Factors for surge in the international

    List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

    		•
  • Q : Meaning of drawing What is the meaning

    What is the meaning of drawing in financial accounting?

    		•