In a(n) _____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

Question

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Inconvertible currencies and cash-short customers can kill an international sale if the seller cannot offer long-term financing. Unless the company has large cash reserves to finance its customers, a deal may be lost. Forfaiting is a financing technique for such a situation. The seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

In A(n) _____, the Seller Makes a One-Time Arrangement with a Bank