Forfaiting Glossary:
Definition results for your selection are shown below.
Back-to-Back Credit:
Two letters of credit which cover a single shipment of goods, involving a middleman.
Bank Bond:
A bond which has been issued by a bank, as opposed to a surety or insurance company.
Barter:
The simple exchange of one set of goods for another with no money changing hands (see Countertrade).
Basis Point:
One hundredth of a percentage point (100 basis points = 1 per cent).
Beneficiary:
The seller under a Letter of Credit.
Berne Union:
The International Union of Credit and Investment Insurers, a group of over 40 organisations from 30 exporting countries.
Bid Bond:
A bond/guarantee required to be issued from a company tendering for a contract to assure the prospective buyer that he will comply with the terms of the tender should it be accepted.
Bilateral Clearing Agreement:
A trading agreement between two countries, neither of which has a hard currency, and in which transactions are entered in clearing units, instead of a fixed currency.
Bill of Exchange:
An unconditional order in writing addressed by the drawer (exporter) to the drawee (importer) requiring the drawee to pay a sum of money to, or to the order of, a specified institution/person (payee) or to the bearer.
Bill of Lading:
A receipt issued by shipping companies to the shipper as evidence of a contract of carriage, ownership of goods and pre-payment of freight charges for goods carried by sea, .
Buy-back:
An agreement to purchase products that will eventually be produced by the capital equipment supplied under the export sales agreement.
Buyer Credit:
A financial agreement in which a bank, other financial institution, or an export agency in the exporting country extends a loan directly to a foreign buyer or to an institution in the importing country.