forfaiting - A form of fixed-rate trade finance. It involves the purchase by a financial institution - the forfaiter - of an exporter's debts. These debts are usually in the form of bank bills of exchange or promissory notes and have been accepted by the exporter as deferred payment for goods sold to foreign buyers. The exporter sells the bills or notes at a discount, for cash, and passes all commercial or political risks and responsibilities for collection t