Forfaiting Glossary

Glossary Items beginning with : O

Obligor

The Primary Obligor and any person that has an obligation under a credit support document, as defined in URF 800.

OECD

Organisation for Economic Co-operation and Development, an association between a number of counties which works to promote economic growth in its member countries.

Off-cover

The term applied by an ECA to an importing country on which it is no longer prepared to extend insurance cover.

Offset

A condition imposed by the buyer whereby the seller must also supply goods or technology. If these are directly related to the sale it is known as direct offset. If these are indirectly related to the sale it is known as indirect offset.

Open Account

The buyer pays the exporter at an agreed time after the exporter has shipped the goods or delivered the service.

Open Account Trade

Trade in which a buyer pays its supplier without the requirement for any form of guarantee or security of payment from the supplier.