| Non-recourse Factoring |
Funding of trade receivables where UCF assumes the obligation to pay the assigned receivables to the supplier in the event of customer's unwillingness or inability to pay. The service covers funding of receivables, their insurance against unwillingness or inability to pay, their management and collection |
| Cession |
Assignment/transfer of the ownership of receivables/group of receivables from assignor (supplier) to assignee (factor). |
| Cession Clause |
Printed or a glued-on notice of the assignment of a group of receivables, or individual receivables pertaining to the group of receivables to factor together with the payment instruction concurrently informing the customer about assignment of the group of receivables, or individual receivables out of the assigned group of receivables |
| Credit limit |
Maximum value of the assigned receivables with the guarantee of their payment by the factor under the agreed conditions (the so-called non-recourse factoring) |
| Supplier |
Entity supplying goods and/or providing services to a customer |
| Factor |
Buyer of the group of receivables assigned by the supplier |
| Factoring |
Factoring is a method used to fund short-term credits provided in case of supplies of goods and provision of services. Basically, factoring is the purchase of short-term receivables, usually without recourse affecting the original creditor. The relationship is based on a factoring agreement which lays down the rights and obligations of both parties. |
| Funding Limit/Customer Funding Limit |
The maximum value of the assigned receivables from one customer the purchase price of which factor may partially cover (pre-funding); expressed as an absolute figure and/or percentage of the total verified balance of the receivables assigned to the factor |
| Guarantee Limit (advised to the client) |
Maximum value of the assigned receivables purchased with the guarantee of their payment by the factor under the agreed conditions (the so-called non-recourse factoring) |
| Guarantee Payment |
Factor's payment to the supplier based on the accepted risk of non-payment of the assigned receivable by the customer up to the guarantee limit less the supplier's share in the damage arising out of defaulted payment of the assigned receivable by the customer |
| Collection |
Steps leading to the settlement of the debt by the customer not resulting in the obligation to pay to the supplier |
| Insurance Limit (granted by the re-insurance company) |
Maximum value of the assigned receivables with the guarantee of their payment by the re-insurance company to the factor under the agreed conditions |
| Purchase Price |
Price for the assignment of a group of receivables or individual assigned receivables |
| Indirect Payment |
Customer's payment to the supplier or to another person intended for the settlement of the receivable assigned to UCF whether in the form of financial payment, valid offset of receivables, or otherwise (e.g. return of goods by the customer) |
| Customer |
Entity which owes amounts (receivables) to the supplier constituting the subject-matter of funding/purchase and which is obliged to pay the purchase price for the supply of goods and/or services provided by the supplier |
| Payment Instruction |
Supplier's written instruction to the customer about the method of settlement of a group of receivables or individual assigned receivables |
| Receivable |
Supplier's claim to the payment of the purchase price for the goods and/or service supplied by the supplier to the customer based on a contractual relationship between the customer and the supplier expressed in a nominal value on an invoice, bill of exchange, or other payment document, including any and all appurtenances to such receivable, all security and rights related to the receivable, including any ancillary claims relating to the receivable, claims out of ancillary arrangements relating to the receivable, and claims to damages (loss), in the quality (i.e. having features) which are laid down under these general conditions |
| Insurer |
Entity which provides security for the settlement of receivables purchased by the factor owed by customer/s |
| Assigned Receivable |
Each individual receivable pertaining to a group of receivables assigned to the factor based on factoring agreement |
| Counter-claim |
value claimed by the customer from the supplier in the form of complaint, claim, offset or otherwise, and which the customer may use to reduce customer's payment to the supplier for the supply of goods and/or provision of services (consideration intended for the settlement of the assigned receivable) |
| Pre-financing |
Factor's payment of the agreed part of the purchase price to the supplier for the assigned group of receivables/individual assigned receivables before the due date |
| Pre-financing Line |
Maximum amount the factor committed to provide to the supplier |
| Recourse Factoring |
Funding based on the purchase of trade receivables with a recourse affecting the client if the customer fails to pay. The service includes funding, management and collection of receivables |
| Group of Receivables |
A group of existing and/or future receivables defined particularly by information designating them as existing and/or future receivables, legal ground, maturity, identification of the customer or customers and/or time the assigned receivables arose |
| Foreign Factor |
Factor's contractual factoring company in the relevant territory which takes care of the collection of receivables based on assignment of a group of receivables and provides insurance limit.
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