Usage or drawing by the Assignor of funds made available by a Factor or a lender based on an asset (invoice)
The entity to which an Invoice is assigned.
The transfer of Invoices from the Assignor to the Assignee.
The entity disposing of an invoice by an Assignment.
Confidential Factoring or Not Notification Factoring
Form of Factoring in which the Assignment has not been notified to the debtor. The Assignor retains total control over the management of collections with the possibility to use a dedicated banking account for that operation.
Credit Risk Coverage
A service offered by a factoring company in which it accepts the risk of non-payment (default or insolvency) in the event that the debtor is unable to pay its debt.
Network of businesses whose common aim is to facilitate international trade through Factoring, linking the Factors of the different countries to collect locally in those countries.
A business that has been supplied with goods or services by the Client and is obliged to make payment for them to the Factor, since its debts have been assigned/sold to a Factor.
A financial institution providing Factoring facilities.
Document issued by the Seller to the Buyer, where information regarding the value of the credit to be paid and payment conditions are registered, among others.
A notice issued by the Assignor to a Debtor which informs him that its related (total or partial) debts payable have been assigned to the Factor.
System whereby a Factor uses, by sub-Assignment, a Factor in another country (correspondent Factor) to collect the Receivables of an Assignor exporting to a customer in that country with or without Credit protection and Advancement. The relationship between the Correspondent Factors is usually governed by a previously established Interfactor agreement.