When a bank purchases at a discount from an importer a series of promissory notes in favor of an exporter,this is called

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Forfeiting refers to the purchase of a series of promissory notes at a discount by a bank from an importer, which are in favor of an exporter. This is a method of finance that ensures the exporter receives immediate cash, while the importer gets the benefit of deferred payment.

When a Bank Purchases at a Discount from an Importer