Forfaiting Glossary:
Definition results for your selection are shown below.
Recourse:
The right to recover funds (plus interest where appropriate) from borrowers if lenders are not reimbursed as they expect to be.
Red Clause:
A credit where the advising bank makes preshipment advance payments to the beneficiary.
Remitting Bank:
The bank instructed by a principal to remit funds.
Residual Value/Share:
The uninsured percentage of the credit risk which must be borne by the insured party (the exporter or the lender).
Retention Bond:
A guarantee to a buyer that, if problems occur in a contract subsequent to its completion, funds will be retained by the buyer.
Revolving Credit:
A credit where the value of available drawings is reinstated automatically once drawn and within a stated period of time.