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Under Forfeiting, How Does A Seller Obtains An Undertaking

Posted: Sun Mar 30, 2014 10:41 am
by zareen
under forfeiting, how does a seller obtains an undertaking similar to a confirmed irrevocable credits?

forfeiting

Posted: Wed Apr 02, 2014 7:50 am
by iam90
Zareen,

A essential element of forfaiting is that the forfaiter buys the bill from the seller without recourse to the seller, against the security of bills accepted or guaranteed by a bank acceptable to the forfaiter. It is similar to the confirmed L/c because both are without recourse.

Allan