forfaiter

A forfaiter is a financial intermediary that buys the future payment obligations of exporters, often in international trade. When a business exports goods, it might not receive payment immediately. To improve cash flow, the exporter can sell the payment rights to a forfaiter at a discount. In return, the forfaiter assumes the risk of non-payment, allowing the exporter to get immediate cash. This arrangement helps exporters manage their finances while providing forfaiters with a potential profit from the difference between purchase price and the future payment. It's a common practice to enhance liquidity and reduce risk in trade finance.