3 syllables: for, fait, ing. Stress on fait.
fawr-FAY-ting
/fɔɹˈfeɪtɪŋ/
forfaiting is pronounced fawr-FAY-ting (/fɔɹˈfeɪtɪŋ/). It has three syllables (for-fait-ing), with the stress on "fait". Forfaiting is a financial practice in which an exporter’s medium- to long-term receivables are sold to a specialized financial institution at a discount, in exchange for immediate liquidity. It typically involves international trade and eliminates the seller’s credit risk and collection concerns. The term also implies the related process of forfaiting, where the buyer removes the risk of non-payment by transferring the payment obligation to a third party.
Forfaiting is a financial practice in which an exporter’s medium- to long-term receivables are sold to a specialized financial institution at a discount, in exchange for immediate liquidity. It typically involves international trade and eliminates the seller’s credit risk and collection concerns. The term also implies the related process of forfaiting, where the buyer removes the risk of non-payment by transferring the payment obligation to a third party.
"The company pursued forfaiting to free up capital for new orders."
"Forfaiting arrangements helped the exporter avoid currency risk and improve cash flow."
"The bank offered forfaiting as a way to discount receivables and reduce credit exposure."
Pronounce it as fawr- FIT-ing in US and UK styles, with the emphasis on the second syllable. IPA: US fɔːrˈfeɪ.tɪŋ; UK fɔːˈfeɪ.tɪŋ. Start with an open o sound, then a clear /f/ + /ɔːr/, then a stressed /feɪ/ syllable, ending with /tɪŋ/. Mouth position: lips neutral to rounded for /ɔː/, tip of tongue near the alveolar ridge for /t/, and a light alveolar click for the final /ŋ/.
Two frequent errors: (1) Misplacing stress on the first syllable as for-FAI-ting instead of for-ˈfai-ting; ensure the primary stress is on the second syllable. (2) Slurring /tɪŋ/ into a quick -ting or dropping the /ŋ/. Keep a crisp /t/ followed by a clear /ɪŋ/. Correct by practicing the sequence fɔːr-ˈfeɪ- tɪŋ with a light, crisp /t/.
US/UK both place primary stress on the second syllable: for-ˈfait-ing. The difference lies in rhoticity and vowel quality: US tends toward rhotic /r/ post-vocalically and a slightly longer /ɔː/ before /f/. UK tends to non-rhotic /r/ and a crisper /ɑː/ or /ɔː/ depending on speaker. Australian typically agrees with UK vowel quality but may reduce the second vowel slightly. Overall the main difference is vowel length and rhoticity, not syllable stress.
The difficulty comes from the combination of a high-gesture /ɔː/ vowel, a stressed /feɪ/ sequence, and the trailing /tɪŋ/ cluster. The /ˈfeɪ/ stresses the middle, and the final /tɪŋ/ requires careful tongue positioning to avoid a dull or swallowed final consonant. Practicing the transition from /feɪ/ to /t/ and then to the velar nasal /ŋ/ helps maintain clarity.
There is no silent letter in forfaiting. Every letter corresponds to a sound: f, ɔː, r, f, eɪ, t, ɪ, ŋ. The tricky part is achieving the distinct /feɪ/ vowel after the /r/ and maintaining a clean /t/ before the final /ɪŋ/. Ensure the /t/ is produced with a firm touch before the velar nasal /ŋ/.
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The term forfaiting derives from the French word forfait, meaning a lump sum, fixed price, or an agreed sum, and the infinitive suffix -ing. The core notion is selling an obligation for a lump sum payment, effectively buying out the seller’s future receivables at a discount. English adoption of the term dates to the mid-20th century in the context of specialized trade finance. The concept existed in practice prior to formal naming, but the word forfait arises from French commercial jargon for a fixed, all‑inclusive price. Over time, forfaiting in English banking literature came to denote a distinct form of receivables financing where the exporter’s future payments are transferred to a bank or financial intermediary, removing the risk of non‑payment and currency fluctuations from the seller. The first known uses appear in mid-1900s finance texts describing exporter financing strategies, with examples in international trade where a buyer’s obligation is sold to a bank for immediate liquidity. The word’s semantic evolution tracks the broader shift in post‑war globalization toward specialized, non-recourse financing structures for trade receivables. In contemporary practice, forfaiting is tightly associated with non-recourse, zero-refunding banks’ purchase of future payments, typically for large-ticket export contracts.
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💡 These words have similar meanings to "forfaiting" and can often be used interchangeably.
🔄 These words have opposite meanings to "forfaiting" and show contrast in usage.
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Words that rhyme with "forfaiting"
-ing sounds
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