Method of export trade financing, especially when dealing in capital goods (which have long payment periods) or with high risk countries. In forfeiting, a bank advances cash to an exporter against invoices or promissory notes guaranteed by the importer's bank. The amount advanced is always 'without recourse' to the exporter, and is less than the invoice or note amount as it is discounted by the bank. The discount rates depends on the terms of the invoice/note and the level of the associated risk.

Use forfeiting in a sentence

You need to make sure that you are not forfeiting anything that could help you earn sometime in the future.

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He knew that by doing that, he would be forfeiting his right and would not be allowed back in the country at all.

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John Smith decided to leave ABC Inc. forfeiting all his shares in the company to take a job that offered better benefits, higher salary and a larger share of the market.

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