Forfaiting resembles factoring but involves medium- to long-term receivables and larger transactions.

Question

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Forfaiting is a specialized form of trade financing that involves the purchase of medium- to long-term receivables, typically for export transactions. It is similar to factoring in that it involves the sale of receivables to a third-party, but forfaiting deals with larger transactions and longer payment terms, often involving cross-border trade.

Forfaiting Resembles Factoring but Involves Medium- to Long-Term Receivables and Larger