--%>

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 : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:

  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

  • Q : Difference between Finance and Accounts

    What are the basic differences between Finance and Accounts?

  • Q : Explain production budget Give a short

    Give a short introduction of the term ‘production budget’?

  • Q : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues

  • Q : Salary outstanding account What type of

    What type of Account is Salary outstanding? What do you think, it is real or personnel or the nominal account?

  • Q : Matlab Applications in Control System

    Student faces a lot of difficulties in Matlab control system assignments and topics. If you are also having same issues and problems then www.tutorsglobe.com is the best available solution for you. We have highly skilled and experienced tu

  • Q : Success and failure of the employees

    What are the reasons for the success and failure of the employees ?

  • Q : Concessionary loan with APV model State

    State nature of the concessionary loan and explain how it is handled within the APV model?