Plain-language definitions of 133 terms used in raw material trade: Incoterms, payment, shipping, customs, quality documents, plastics, metals, chemicals, agriculture and energy.
Turning receivables from credit sales into cash before maturity by assigning them to a finance provider. Factoring is used for short-term, recurring invoice receivables, with or without recourse (in non-recourse factoring the factor takes the buyer’s default risk). Forfaiting is the non-recourse discounting of individual, usually larger and longer bank-backed claims such as accepted drafts under a letter of credit or avalised bills. Both ease the exporter’s working capital.
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