Factoring is an arrangement that converts your receivables into ready cash and you don't need to wait for the payment of receivables at a future date. Forfaiting implies a transaction in which the forfaiter purchases claims from the exporter in return for cash payment. Forfaiting implies a transaction in which the forfaiter purchases claims from the exporter in return for cash payment. Trading the bill of exchange before it becomes due for payment at a price less than its face value is known as Bill Discounting.

Answer given by Shubhamm Sir at 02-Dec-2022 05:14 PM