Professional paper

Forfaiting – Form of International Trade Receivables Collection

ANASTAZIJA VINKOVIĆ KRAVAICA orcid.org/0000-0002-7862-4126 ; VELEUČILIŠTE U RIJECI
LAHORKA HALMI orcid.org/0000-0002-9905-5778 ; KARLOVAC UNIVERSITY OF APPLIED SCIENCES

Abstract

Forfaiting is becoming ever more present form of financing international business activities. By it, exporters are financed in a way that financial or non-financial institution buys off short and medium-term receivables on a non-recourse basis. This form of financing eliminates the risk of non-payment by importers in instances where the importing firm or its government is perceived to be too risky for open account credit. By utilizing the forfaiting technique, exporters are more competitive within the international market due to the deferred payment offered to the foreign buyers and assuring the payment of the sum of the supplier’s credit at the same time. Although well known in the world, this form of financing is generally unknown in Croatia. In Croatia, forfaiting services are mostly offered as bank services. The aim of the paper is to present traits of this particular form of export-financing.

Keywords

forfaiting; foreign trade customers; payment

Hrčak ID:

87828

URI

https://hrcak.srce.hr/87828

Publication date:

20.8.2012.

Article data in other languages: croatian

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