Trading Terms

Forfaiting

In the world of finance, a forfaiter is an individual or company that buys a business's accounts receivable. These receivables are typically based on negotiable instruments like bills of exchange and promissory notes. Unlike factoring, forfaiting deals with larger, longer-term obligations. This means that the forfaiter takes on a higher level of risk, both in terms of commercial and political risk. As the bills are purchased on a non-recourse basis, the forfaiter assumes full responsibility for any potential losses.

Related terms

Unfair calling insurance

Understand the meaning and definition of Unfair calling insurance in the context of stock market, trading, and investments.

MORE
IRA

Understand the meaning and definition of IRA in the context of stock market, trading, and investments.

MORE
F Statistics

Understand the meaning and definition of F Statistics in the context of stock market, trading, and investments.

MORE
Qualified acceptance

Understand the meaning and definition of Qualified acceptance in the context of stock market, trading, and investments.

MORE
AAR

Understand the meaning and definition of AAR in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers