A number of financial institutions are financing receivables from Eastern European and developing countries by a method called forfaiting. Forfaiting is nonrecourse financing of receivables similar to factoring. However, while a factor normally purchases a company’s short-term receivables, a forfait bank purchases notes that are long-term receivables with maximum maturities of eight years. The forfaiting bank has no recourse to the seller of the goods but gets the notes at a substantial discount for cash. The centers of forfaiting are Zurich and Vienna, where many large banks, including American institutions, provide forfeiting either through their branches or specialized subsidiaries. Forfaiting is used when government export credits or credit guarantees are not available or when a seller does not extend long-term credits to areas, such as Eastern Europe. Forfaiting is an important method of financing for small and medium-sized companies because it enables them to negotiate transactions that would normally exceed their financial capabilities. By using forfaiting, small and medium-sized companies can immediately sell their long-term receivables without recourse.