Economics · International Trade Finance

In a forfaiting transaction, which statement about risk distribution is incorrect?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Exporter transfers the receivable to the forfaiter with no further obligations or recourse.
2Exporter can pursue importer if forfaiter fails to settle the receivable.✓
3Exporter is shielded from political and commercial risks.
4Forfaiter assumes importer payment default risk.

Correct answer

Exporter can pursue importer if forfaiter fails to settle the receivable.

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