Sources Forfaiting exporter receives cash at the time of shipment via third party. The exporter receives promissory notes and receives cash from a third party which buys them at a discount Factoring purchase of exporter's receivables at a discount
Sources: • Forfaiting: – exporter receives cash at the time of shipment via third party. The exporter receives promissory notes and receives cash from a third party which buys them at a discount. • Factoring: – purchase of exporter’s receivables at a discount
Official Trade Finance -takes place either as a loan or a guarantee provided by govt Pre-Export Support Export Credit Insurance
• Official Trade Finance-takes place either as a loan or a guarantee provided by govt. – Pre-Export Support – Export Credit Insurance