Forfaiting, in which a bank purchases at a discount from an importer a series of promissory notes in favor of an exporter,

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Forfaiting is typically used as a medium-term form of trade financing, with the maturity of the promissory notes usually ranging from 180 days to several years. This form of financing provides the exporter with immediate cash flow while transferring the risk of non-payment to the forfaiting bank.

Forfaiting, in Which a Bank Purchases at a Discount from an Importer