Friday, January 20, 2012

Factoring Vs Forfaiting


Factoring

Forfaiting

For Short Term receivables

For medium / long term receivables

Discounting charges are borne by seller

All expenses are pushed to buyer (from seller)

With / without recourse

Always without recourse

90% payment on shipping of docs

100% payment as soon as shipping docs are handed over

No other additional instruments are required

Will insist for LC or avalized banker acceptance (from buyer’s bank)

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