Fortaiting in International Trade

Abstract

Forfaiting is a financial operation that allows accounts receivable for transactions carried out in International Trade to be made effective, aimed at the exporter of goods and services without resources. Forfaiting consists of the purchase operation by financial and banking institutions of export letters of credit and / or collections guaranteed by the importer. In a forfaiting operation, the exporter agrees to deliver contracts signed by the importer for the sale of goods or services so that a Bank or Financial Institution can make them effective in order to have the resources and continue developing its export activity.