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Rahmenforfaitierung

English translation: forfaiting

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Forfaitierung
English translation:forfaiting
Entered by: R. A. Stegemann
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09:32 May 18, 2002
German to English translations [PRO]
Bus/Financial - Finance (general)
German term or phrase: Rahmenforfaitierung
From a list of services provided by a bank for its corporate clients. Comes in a sub-list relating specifically to foreign trade services, but I'm afraid I can't provide any more context than that.
Heather Starastin
Canada
Local time: 06:05
limited forfaiting
Explanation:
Forfaiture, forfaiting:

Forfaiture is the French word for forfeiting, i.e. 'to relinquish a right'.  Forfaiture is a trade financing option for exporters.  Forfaiting companies purchase CREDIT INSTRUMENTS from exporters at less than the full value at maturity (at DISCOUNT) or for a fee, or for a combination of each depending on the conditions of the credit instrument and the arrangements between the client and forfaiter.  By doing this, the forfaiting company assumes the risk of collection.  If the importer does not pay, it is no longer the exporter's problem.

    Since the forfaiting company assumes all the risks of collection, the rules for purchasing credit instruments are stringent, and the forfaiting company has the option of holding the instruments until maturity or selling them to another investment entity.  At maturity, each instrument is presented to the importer's bank for collection.


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Note added at 2002-05-18 10:16:03 (GMT)
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http://fraudaid.com/Dictionary-of-Financial-Scam-Terms/forfa...
Selected response from:

R. A. Stegemann
Saudi Arabia
Local time: 19:05
Grading comment
Thanks very much - also for the excellent explanation! :-)
4 KudoZ points were awarded for this answer

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Summary of answers provided
3 +1limited forfaiting
R. A. Stegemann


Discussion entries: 1





  

Answers


42 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
limited forfaiting


Explanation:
Forfaiture, forfaiting:

Forfaiture is the French word for forfeiting, i.e. 'to relinquish a right'.  Forfaiture is a trade financing option for exporters.  Forfaiting companies purchase CREDIT INSTRUMENTS from exporters at less than the full value at maturity (at DISCOUNT) or for a fee, or for a combination of each depending on the conditions of the credit instrument and the arrangements between the client and forfaiter.  By doing this, the forfaiting company assumes the risk of collection.  If the importer does not pay, it is no longer the exporter's problem.

    Since the forfaiting company assumes all the risks of collection, the rules for purchasing credit instruments are stringent, and the forfaiting company has the option of holding the instruments until maturity or selling them to another investment entity.  At maturity, each instrument is presented to the importer's bank for collection.


--------------------------------------------------
Note added at 2002-05-18 10:16:03 (GMT)
--------------------------------------------------

http://fraudaid.com/Dictionary-of-Financial-Scam-Terms/forfa...

R. A. Stegemann
Saudi Arabia
Local time: 19:05
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 10
Grading comment
Thanks very much - also for the excellent explanation! :-)

Peer comments on this answer (and responses from the answerer)
agree  Ralf Lemster: ...a somewhat more positive reference is http://public.deutsche-bank.de/deuba/db/bblex_ge.nsf/webdbdo...
6 mins
  -> Your sense of humour is appreciated and thanks for the great reference. It will likely prove useful in the future.
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Changes made by editors
Jan 25, 2012 - Changes made by Steffen Walter:
Field (specific)(none) » Finance (general)


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