| 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) |
Friday, January 20, 2012
Factoring Vs Forfaiting
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