every day in our everyday life there are more borrowed words from foreign languages.The meaning of some fairly clear and understandable.Such terms quickly take root and become part of everyday speech.For example: Kulnev, laptop, player, mobile phone and others.However, there are a number of specific terms, the origin and nature of the future use of which can understand not all.The category of these words is the concept of forfeiting.What is it?In simple words to explain the meaning of the foreign long term can only be familiar with the basics of economic man.Possible assistance in this matter will have and paper, revealing the structure and application of this concept.Often people confuse or relate the factoring and forfaiting.These are two different terms that virtually no contact.The latter concept will be discussed in this article.
origin and nature interpretation
Forfaiting - is an economic term.Homeland of the word is England.It was there that there was such a thing as a forfeit, which means "penalty", "fine", "pay", "right to lose."More earliest form of the word is the French equivalent of a forfai, or "whole."
Currently, there are several options for decoding of the term.Thus, forfeiting - a financial operation in which an agent or as it is known in the market, forfeytor acquires obligations of a commercial nature buyer / borrower / importer to the seller / lender / exporter.For example, A company must return the 100 thousand conventional monetary units for the goods delivered to it by B. In this case there is no possibility to pay our debt.Then the situation may enter a third party that will repay a loan company A. The company B receives the money.And the organization - a reprieve on payment of the loan.Agent - not only spent the money, but also a percentage of future profits.As an agent often serves banking structure.
more information
thus forfeiting - a specific form of credit, term of payment of which occurs after a certain period.As a rule, the time period taken for several years.The subject of the lending transaction the merchant or service.The main feature of the commission of this operation is the availability of the item on the responsibility for risks.Forfeytor may purchase debt obligations "without recourse."That is, the bank-borrower purchasing documents are not allowed to claim their previous holder.As securities are usually used bills.
features and location of the
Forfaiting - is fairly common in the West, the way trade credit.Particularly popular it has received in the UK and Germany.What are there particular transaction?Let's see.Firstly, the initiator of the operation forfeiting can act as the seller and the buyer.Or by common agreement.Diagram of the process follows:
- agent bank to the buyer puts a number of financial conditions.
- Last offers forfeytoru securities that fully satisfy their demands.
- Then the bank buys debt securities from the seller.
documents (in their favor as promissory notes and bills of exchange), provided forfeytoru-agent, are proof of receipt of the goods, as well as evidence of the assignment of the loan and the right to the proceeds, which is scheduled to receive from the sale of products in the future.
Benefits
now spread so-called international forfaiting.The main advantage of it is the ability to purchase goods for cash at the moment, instead of the profit that will be available in the future.The advantage is also a fixed interest rate.It allows the borrower to quickly and easily plan the cost of the loan.In addition, the paperwork is very simple and quick procedure.
on the territory of the Russian Federation for a period of forfeiting transactions often exceed the European period of several days.The reason for this is the need for specially designed permission from the Central Bank.That, in turn, should receive the request for approval of the transaction.Consideration of the application takes about a month.
Disadvantages
Unlike bank loans, forfaiting transactions are strictly confidential.However, they have their disadvantages.For example, finding a guarantor for the bank.Besides the interest rate of such operations is considerably higher than for other types of loans.
When making forfeiting transactions should pay particular attention to items such as:
- it is imperative and timely warnings seller about repayment of existing debt installments.
- Bank must stand guarantor of repayment, unless the buyer is a government representative or an international company.
