Forfaiting Glossary

Glossary Items beginning with : G

GAAP : Generally Accepted Accounting Principles

The common set of accounting principles, standards and procedures that companies use to compile their financial statements including IFRS.

Geneva Convention

The Convention providing a Uniform Law for Bills of Exchange and Promissory Notes Geneva 1930.

Green Clause

A form of credit where the goods awaiting shipment are required to be stored in the advising bank’s name.

Gross Up

Additional payments made by a borrower to compensate its lenders for withholding taxes or similar levies that reduce the amounts actually received by the lenders from the borrower.

Guarantee

A document signed by the Guarantor in which such entity commits as Primary Obligor to pay the payment claim if the Obligor fails to make such payment on the due date.

Guarantee Fee

An amount paid by the importer to the avalizing/guaranteeing bank usually calculated as a percentage per annum of the average face value of the facility outstanding for the guarantee provided by such entity.

Guarantor

Person, bank or financial institution who gives a guarantee for the Obligor.