Question

What is the primary distinction between factoring and

Q: Answer-What is the primary distinction between factoring and forfaiting?

Factoring is used for both domestic and international trade, whereas forfaiting is exclusively for international trade transactions. Factoring can be with or without recourse and involves smaller sums of money compared to forfaiting, which is generally for larger sums.

forfaiting?

A Factoring is used only for domestic trade, while forfaiting is used for international trade

B Forfaiting involves two stages of payment

C Factoring is always without recourse

D Factoring deals with larger sums of money than forfaiting

E Factoring involves financial institutions only, whereas forfaiting involves individuals

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What is the primary distinction between factoring and

Solution