The word forfeit has its origin in a French term forfeit which means-relinquishing of the rights on something to someone else. Under this mode of export finance, an exporter surrenders his right to the future receivables from importer and the forfeiter usually loses his right of recourse to the exporter in the event of nonpayment by the importer. In the early sixties, East Europeans desired to obtain supplies of Capital goods on credit terms as they faced shortage of hard currency to pay for their imports on cash basis. The West Germans offered credit at fixed rates of interest against Bills of Exchange or Promissory Notes, guaranteed by the importer's bank. The West German suppliers, in turn, looked forward for refinancing facility. It was because they could not wait for payments for long-time, particularly because of financial and political risk in East European countries. German banks were also too scared of giving refinance under such background. Some financiers from Switzerland came forward to discount the bills of exchange or promissory notes without recourse to the exporters. These financiers called forfeiters. Thus, forfeiting took shape in Switzerland and later on spread to London, Frankfurt, Hongkong, Singapore etc. Exporters of many countries including USA, Japan etc. are availing of this facility increasingly.At present London is the main centre of forfeiting business. Banks like Amsterdam Rotterdam Bank, Chase Investment bank, bar day's bank, Citicorp investment bank, Midland bank London forfeiting Asia; Hungarian International bank etc. are active players in this market. The world-wide market for forfeiting could be around 40 billion Dollars. Forfeiting is the purchase of bills of exchange or promissory notes falling due at some future date arising from the export of goods services, without recourse to the previous holder of the bills or notes. The forfeiter (the bank or financial institution which purchases the bills or notes from the exporter or in the secondary market) discounts promissory notes issued by the importer or bills of exchange issued by the exporter drawn on and accepted by importer and guaranteed by importer's banker. The word forfeit has its origin in a French term forfeit which means-relinquishing of the rights on something to someone else. Under this mode of export finance, an exporter surrenders his right to the future receivables from importer and the forfeiter usually loses his right of recourse to the exporter in the event of nonpayment by the importer. In the early sixties, East Europeans desired to obtain supplies of Capital goods on credit terms as they faced shortage of hard currency to pay for their imports on cash basis. The West Germans offered credit at fixed rates of interest against Bills of Exchange or Promissory Notes, guaranteed by the importer's bank. The West German suppliers, in turn, looked forward for refinancing facility. It was because they could not wait for payments for long-time, particularly because of financial and political risk in East European countries. German banks were also too scared of giving refinance under such background. Some financiers from Switzerland came forward to discount the bills of exchange or promissory notes without recourse to the exporters. These financiers called forfeiters. Thus, forfeiting took shape in Switzerland and later on spread to London, Frankfurt, Hongkong, Singapore etc. Exporters of many countries including USA, Japan etc. are availing of this facility increasingly.At present London is the main centre of forfeiting business. Banks like Amsterdam Rotterdam Bank, Chase Investment bank, bar day's bank, Citicorp investment bank, Midland bank London forfeiting Asia; Hungarian International bank etc. are active players in this market. The world-wide market for forfeiting could be around 40 billion Dollars. Forfeiting is the purchase of bills of exchange or promissory notes falling due at some future date arising from the export of go