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What Is the Difference Between Forfaiting and Factoring

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What is the difference between forfaiting and factoring?


Definitions:

Tax-Oriented

Refers to financial strategies or decisions that are primarily influenced by tax considerations.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Net Advantage to Leasing (NAL)

A calculation used to determine the financial benefits of leasing an asset as opposed to purchasing it.

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