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A
- see debtor- Charge made by the factoring or invoice discounting company (often by deduction from the purchase price of debts) calculated on the amount of each debt purchased by the factoring company. The charge is made to compensate the factoring company for taking over certain administrative functions and /or the risk of bad debts. the case of invoice discounting the discounter chares for monitoring the sales ledger and therefore the fee is much lower
- The percentage of an invoice's face value which a factoring company pays upon its purchase.
- A schedule of outstanding debts by reference of their due dates
- Factoring disclosed to the debtors but with the sales accounting and collection functions retained by the client
- In relation to a debt: in the case of non-recourse factoring, not subject to recourse to the client by reason of the financial inability of the debtor to pay the debt; and/or in the case of most forms of factoring (except maturity), eligible for a prepayment on account of its purchase price.
- A business loan where the borrower pledges as collateral for the loan any assets, such as invoices, purchase orders or equipment, used in the conduct of his or her business. Funds are used for business related expenses. All asset-based loans are secured. Factoring companies often provide this service
- The written instruction to the debtor to pay the factoring company normally placed on the face of each invoice issued by the client other than in invoice discounting or undisclosed factoring
- The amount payable, at any time, by the factoring company or invoice discounting company to the client for or on account of the purchase price of debts sold to the factoring company or invoice discounting company
- the provision of factoring services to a debtor in order to provide security for approval of the debtor's indebtedness arising from the sales of another client
- Payment, of the purchase price of a debt purchased by the factoring company, on the due date for payment of the purchase price (the maturity date or collection date) after deducting any prepayment made in respect of that purchase that the factoring company has made
- A bundle of copy invoices a company puts a "notification" to a factoring company or invoice discounting company
- see Agency factoring
-(see Taxation of costs and Summary assessment)
- An instrument similar to a time or sight draft which the buyer signs. This is acknowledgement of debt for the goods he is buying
- A shipping document which gives instructions to the company transporting the goods
- document used to transfer the title of certain goods from seller to buyer
- A Bona Fide agreement is one entered into genuinely without attempt to fraud
- An international association of correspondent factors worldwide
- An amount payable by the client to the factoring company in respect of a debt the subject of recourse and debited to the clients account with the factoring company
- A business with which the factoring company has entered into a factoring agreement
- The date on which the factoring company has received payment (by way of cleared funds) for a debt.
- in relation to a factoring agreement, the factoring company is responsible to pay the purchase price only on the collection date with no prepayments.
- Administration charge
factoring (either with or without recourse), without notices of the assignments to the debtors, whereby the client administers the sales ledger and collects as agent for the factoring company
- A formal agreement or a contract constituting an obligation to perform an act
- The approval of a debt of in a non-recourse factoring arrangement whereby the credit risk in relation to that debt is accepted by the factoring company without recourse to the client
- A limit established by the factoring company or invoice discounting company in relation to a debtor within which outstanding debts are deemed to approved
- The risk of the inability of the debtor to pay for a debt, purchased by a factoring company or invoice discounting company, solely by reason of financial inability to pay
- A person to whom money is owed by a debtor
- Invoices to which forward dating has been applied
- Charge back
- All debtors obligations under a contract of sale or service
- Person owing money to another party
- an account maintained by the factoring company on which are recorded the value of all un matured debts purchased by the factoring or invoice discounting company
- The average period of credit taken by the debtors of a client. Invoice discounting companies monitor this closely when using invoice discounting
- The provision of factoring services by a factoring company in the country of the debtors to an exporter in another country without the intervention of a correspondent factoring company in that country. This service can be provided by invoice discounting companies
- In relation to a debt (see unapproved)
- term for agency factoring
- The charge made by a factoring company or invoice discounting company (often as a deduction in calculating the purchase price of debts) for the provision of prepayments. Applies to invoice discounting also
- The factoring of debts arising from sales of a client to debtors in the same country
- Prepayment
- A debt in relation to which the factoring company has prescribed that the client may draw a prepayment on account of the purchase price. Also applies to invoice discounting
- A factoring company (normally in the country of his client) providing factoring for exports and using the two factoring company system. Can be provided confidential through invoice discounting
- An agreement which provides for each debt to be offered by the client to the factoring company who may exercise his discretion as to whether or not to accept it
- A factoring arrangement whereby the factoring company takes on the administrative functions of the sales ledger and collection from debtors, relieves the client from dad debts and provides finance by way of prepayments.
- The aggregate amount, at any one time, of prepayments and amounts charged to the client by the factoring or invoice discounting company un recovered by prepayments from the debtors
- Someone who promises to pay if payment is not made by the person responsible for repayments of a loan
- A correspondent factor (normally in the country of the debtors) who is prepared to take sub-assignment of debts owing by such debtor and consequently be responsible for collection and/or the credit risk
- A payment made by a debtor to the client for a debt purchased by the factoring company contrary to a notice of the assignment of that debt. Invoice discounting debtor payments are made directly to the client who banks the receipts in to the invoice discounting companies bank account
- A debt a factoring or invoice discounting company is not prepared to make a prepayment on account of the purchase price e.g. for reason of breach of warranty by the client or the the amount is in excess of a prescribed limit. In the case of invoice discounting flexibility maybe shown below a base level of funding
- Prepayment
- An agreement between corresponding factoring or invoice discounting companies whereby they mutually agree to act as import and export factoring companies in accordance with a code of practice (e.g. factors chain international)
- Letter sent to each of the debtors by a client at the start of a factoring arrangement to explain the factoring arrangement and instructing the debtor to pay the factoring company for all supplies until further notice. For invoice discounting this is never the case
-Confidential factoring, normally without recourse
- A factoring arrangement where the purchase price of each and every debt is made on a maturity date often without any provision for prepayments. Maturity factoring can be applied to confidential invoice discounting
-The number of days after a invoice date (or the end of the month in which the invoice is dated or the date of the receipt by the factoring company of copy invoices) fixed by reference to a historical average period of credit taken by debtors. The period is the basis for fixing a maturity date
- Retention
- Confidential factoring
- Full factoring or any variation by which the factoring company has no right of recourse in relation of approved unpaid by reason only of the financial inability of the debtor to pay
- A report by the client to the factoring company of the coming into existence of debts (already purchased by the factoring company pursuant to a whole turnover type agreement often by submission of copy invoices. The expression is also used to denote notice to the debtor of the assignment of his indebtedness. Invoice discounting clients perfect the notification online
-Credit not covered by a bill of exchange or promissory note
- A direction by a Court
- Credit limit
- A payment, made by the factoring company or invoice discounting company to the client on receipt of a notification or schedule offer, on account of the purchase price of the debts included in the notification or offer
- A procedure performed subject to and following an agreed manner
- Money distributed on a pro rata basis would be according to the amount of investment
- Debt
- The right of the factoring company to be guaranteed the due payment of a purchased debt by the debtor or to have an unpaid debt repurchased by the client. Recourse periods differ between factoring and invoice discounting companies
- An additional administration charge made by some factoring companies in respect of any debt, which is subject to recourse and remains unpaid after a specified period, in consideration for the factoring companies not exercising his right of recourse. This also applied to invoice discounting companies
- a list of invoices constructing an offer under a facultative type of agreement to the factoring company or invoice discounting company by the client of the debts represented by the invoices. this is often done online by factoring & invoice discounting companies
- the buyer raises invoices on the basis of orders placed and goods delivered
- client
- Administration charge
- An investigation by a factoring company as to the suitability of a prospective client. Invoice discounting companies apply more rigorous procedures for confidential invoice discounting service
- The start of an agreement. All debts are purchased by the factoring company or invoice discounting company at the date of commencement of the factoring or invoice discounting agreement
- Debts subject to recourse and are not eligible for prepayment
- Confidential invoice discounting
- A release of debts from a charge or other encumbrance