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Forfaitierungserloes

English translation: forfaiting

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Forfaitierung
English translation:forfaiting
Entered by: Dr. Fred Thomson
Options:
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- Include in personal glossary

03:24 Mar 20, 2002
German to English translations [PRO]
Bus/Financial - Finance (general) / property management
German term or phrase: Forfaitierungserloes
sentence: Nur bei dieser Vertragsvariante ist es moeglich, durch einen anschliessenden Verkauf der Leasingraten (Forfaitierung) einen Forfaitierungserloes in Hoehe des Verkehrswertes der Immobilie zu erzielen, der dann als freie Liquiditaet von dem Leasingnehmer entnommen werden kann.
Dr. Fred Thomson
United States
Local time: 16:31
forfaiting proceeds
Explanation:
Forfaiting is the commonly accepted term for non-recourse sale (i.e. renunciation by the forfaiter / buyer of the right of recourse to the party selling the claims). These are usually of medium-term receivables resulting from exports of goods and services. The starting point is the granting by the
exporter to the importer of a supplier's credit / loan.

more on this at:
Selected response from:

Johanna Timm, PhD
Canada
Local time: 15:31
Grading comment
Thanks, Johanna!
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +3forfaiting proceeds
Johanna Timm, PhD
4Public-private partnership - another addendumEmma Gledhill
4Just a note on "Forfeiting"
Kaiya J. Diannen


  

Answers


14 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
forfaiting proceeds


Explanation:
Forfaiting is the commonly accepted term for non-recourse sale (i.e. renunciation by the forfaiter / buyer of the right of recourse to the party selling the claims). These are usually of medium-term receivables resulting from exports of goods and services. The starting point is the granting by the
exporter to the importer of a supplier's credit / loan.

more on this at:


    Reference: http://www.anani.com/coverage/glossary/glossary/letter-of-cr...
Johanna Timm, PhD
Canada
Local time: 15:31
Native speaker of: Native in GermanGerman
PRO pts in category: 145
Grading comment
Thanks, Johanna!

Peer comments on this answer (and responses from the answerer)
agree  Translations4IT
37 mins

disagree  R. A. Stegemann: Although forfeiting is a term commonly used in the financing of international export and import transactions, it appears out of place in this context.
58 mins
  -> please note my spelling.

agree  Steffen Pollex: And disagree with Hamo regarding "out of place". At least, he (she) should explain his/her point of view.
1 hr

agree  Cilian O'Tuama: agree with Johanna (also found in Zahn: Bank- und Börsenwesen)
8 hrs

agree  Krokodil: Agree with Johanna for the same reason; have also come across and used this before -
9 hrs
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2218 days   confidence: Answerer confidence 4/5Answerer confidence 4/5
Just a note on "Forfeiting"


Explanation:
I realize I'm stirring this up VERY late in the game (6 years later!) - so I hope anyone who feels disturbed will please accept my apologies.

But I was looking up "Forfaiting" myself, found this proz page, and in response to several concerns regarding a comment here, I felt it would be helpful to future searchers to provide some reference material I came across regarding "Forfeiting" (note: *not* "Forfaiting")

http://www.encyclopediaofcredit.com/WebHelp/international_cr...
"Forfeiting
Exporters sometimes use forfeiting. Forfeiting, which in some ways is similar to factoring, involves the surrender by the Seller of its rights to a negotiable debt instrument(such as a promissory note, or a usance letter of credit) in return for an immediate payment from the Forfeiter. Typically, forfeiting is done with longer-term accounts receivable-typically due in one to five years and when large amounts of money(typically in millions of dollars) are involved. These longer-term accounts receivablemay carry the guarantee of the foreign government or may be covered by a letter of credit, a promissory note, or a bill of exchange."

http://www.ubs.com/1/e/ubs_ch/bb_ch/finance/trade_exportfina...
"Purchasing of claims by the bank, mainly resulting from medium- or long term export transactions. The discounted amount is being paid out without recourse on the seller of the receivables. The predominant payment instruments are bill of exchange, promissory note or documentary credits available by deferred payment. The debtor usually must secure the payment obligation by aval, by an irrevocable and assignable payment guarantee or by a documentary credit of a highly rated bank in his country."

http://www.forfeiting.com/page2.html
"A proven method of providing fixed rate export finance for international trade transactions, in recent years, forfeiting has assumed an important role for exporters who desire cash instead of deferred payments, especially from countries where protection against credit, economic and political risks has become more difficult.

Generally, the export receivables are guaranteed by the importer's bank. This allows the purchaser to discount "without recourse" to the exporter, thus taking the transaction off the exporter's balance sheet. This can have important benefits in terms of its positive effects on the exporting company's key financial ratios."

http://www.fao.org/DOCREP/006/Y5109E/y5109e08.htm (United Nations site)
Factoring is not much used for food trade finance. The forfeiting market is more important in international food trade. Forfeiting is the principal outlet for without-recourse discounting. In a forfeiting transaction, an exporter (seller) remits to a forfeiting company guaranteed debt (usually bills of exchange, promissory notes, banker's acceptances and bills of exchange, or other freely negotiable instruments, which are normally in a hard currency - US dollars, Euros and Swiss Francs are the major denominations) which results from a sale on credit. The forfeiting company pays him cash, upfront, the face value of the debt minus a discount (it should be noted that in practice, the normal mechanism is that a trading company receives, say, a 180-day letter of credit, and discounts this with his bank; the bank then sells this paper on the forfeiting market).

These are just a few examples found when researching "Forfeiting" in this context, so I'm not sure that "Forfaiting" is (the only) hard-and-fast English term.


Kaiya J. Diannen
Australia
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 11
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2423 days   confidence: Answerer confidence 4/5Answerer confidence 4/5
Public-private partnership - another addendum


Explanation:
Like Janet, I'm adding this for others looking for Forfaitierung as I was.

In analogy with the forfeiting method described above, this is also a form of public-private partnership in which the public sector contracts a private company to build e.g a school, the project being financed by the construction company selling the deferred receivables to a bank

http://www.vbd-beratung.de/glossar_eintrag16.php

Therefore in some circumstances and of course depending on context, "Forfaitierung" could simply be translated as public-private partnership or PPP

Emma Gledhill
Local time: 00:31
Native speaker of: Native in EnglishEnglish
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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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