Financial
Forfaiting
Non-recourse purchase of credit instruments (bills of exchange, promissory notes) from medium/long-term export transactions. The forfaiter assumes all political and commercial risk.
Non-recourse purchase of credit instruments (bills of exchange, promissory notes) from medium/long-term export transactions. The forfaiter assumes all political and commercial risk.
Unlike factoring (short-term), forfaiting covers 180-day to 7-year tenors. Ideal for capital goods, machinery, and infrastructure project exports. Always without recourse.
International Factoring
Financing where a financial entity (factor) purchases the exporter's receivables at a discount, providing immediate liquidity. The factor assumes the collection risk from the foreign importer.
FinancialLetter of Credit (L/C)
Payment instrument issued by a bank at the importer's request, guaranteeing the exporter payment if documentary conditions are met. The primary payment mechanism in international trade.
FinancialDocumentary Collection
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.
FinancialInternational Cargo Insurance
Policy protecting merchandise against loss or damage during international transport. Covers maritime, land, and air risks. Can be per-shipment or open (floating) policy.