In trade finance, forfaiting is a service providing medium-term financial support for export/import of capital goods.
Payment may be by negotiable instrument, enabling the forfaiter to lay off some risks.
[1] Like factoring, forfaiting involves sale of financial assets from the seller's receivables.
Key differences are that forfait supports the buyer (importer) as well as the seller (exporter), and is available only for export/import transactions and in relation to capital goods.
[10] Its purpose is to develop business relationships and assist other forfaiting-related organizations.