Explanation:

The characteristics of a forfaiting transaction are: 
1.The payment is normally receivable in any major convertible currency. 
2.A letter of credit or a guarantee is made by a bank, usually in the importer's country. 
3.The contract can be for either goods or services. 
At its simplest, the receivables should be evidenced by a promissory note, a bill of exchange, a deferred-payment letter of credit, or a letter of forfaiting.  
The International Trade & Forfaiting Association (ITFA) was founded in 1999 as a worldwide trade association for the forfaiting industry with a cash contribution of the VEFI (VEFI, founded in 1978 is the oldest forfaiting association in the world). Its purpose is to develop business relationships and assist other forfaiting-related organizations.