--%>
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 : Define Budgetary Control Give a brief

    Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?

    		•
  • Q : Liabilities and Assets in Balance Sheet

    Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

    		•
  • Q : Define Financial Calculator Financial

    Financial Calculator: A financial calculator is an electronic calculator which executes financial functions commonly required in business and commerce communities.

    		•
  • Q : Free international trade in goods and

    Explain, how economic well-being of a country is improved through free international trade in the goods and services?

    		•
  • Q : Categories of occupational crime

    Describe four categories of occupational crime.

    		•
  • Q : Methods handling translation gains and

    How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

    		•
  • Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Q : Case study of a wind turbine for rural

    The goal of this long problem is to validate the turbine performance estimates in specific (XYZ) wind regimes, and estimate its cost.  Below is a list of tasks you will need to accomplish, but you are not limited to these if you want to do more:  

    		•
  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•
  • Q : Computing the credit rating List some

    List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

    		•