zohre afshar quchani
Abstract
In international trade, there are several financing methods which help exporters and importers for buying and selling goods. Forfaiting is one of these methods. It is a financing method in which forfaiter purchases exporters' deferred receivables based on discounting rate and without recourse ...
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In international trade, there are several financing methods which help exporters and importers for buying and selling goods. Forfaiting is one of these methods. It is a financing method in which forfaiter purchases exporters' deferred receivables based on discounting rate and without recourse payment. Type of document, as an evidence of the payment, has an essential role in this commercial contract, since the nature and performance of forfaiting depend on type of document of receivables. While exporter and forfaiter are parties to the financing contract, it isalso applicable against the debtor, and forfaiter can pursuit importer on due date for the payment claim. Moreover, although forfaiting may be trilateral between forfaiter, exporter and importer in which debtor transfers his debt to financial institutions, in the traditional type of forfaiting, exporter assigns his receivables to the forfaiter. This contract is similar to discounting, negotiation, novation, assignment, selling of debt or the payment claim. It seems that the sale of debt is the most appropriate for this new financing method. If commercial papers are used as evidence of the payment, rules of negotiation will be governed in this contract.
