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Briefgold
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Aval credit refers to the covering of payment default through a credit institute, which acts as security for the claiming of arrear moneys. Especially in foreign trade with long or medium range characteristics, the Aval credit allows a reliable and speedy completion of transactions, since the granted bankguarantees require no further security. An even higher security in foreign transactions is allowed through a forfaiteur, who buys out claims without recourse to the seller when he falls into arrears. In this way the company minimises the risk of costs of discount deduction. One must be careful not to confuse forfaiteuring with factoring, where it is possible to revert to the seller and which concentrates on short term claims.
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