Dictionary

Commonly used terms in the Factoring domain

Set of documents, needed for the assignment of receivables realization.

The instrument through which the Supplier legally transfers the ownership of the receivables to the Factor.

Doubtless, non-disputed, payable receivables which possess all the qualities, stated in the factoring contract.

Buyer of the goods and services who is liable for payment of the receivables from the supply of goods or rendering of services.

The cover the factor grants to the seller for shipments of goods or services from the seller (who needs to be covered for the credit risk) to a specific buyer in determined percentage.

The maximum exposure amount for which UCF undertakes to assume the credit risk.

Factoring transaction where both seller and buyer are legally registered entities in Bulgaria.

Factor which acquires receivables from the local Borrower towards its foreign Debtor/s.

Contract which formalizes the business relationship between the Factor and the Borrower.

Factoring service, where the risk on non-payment or default of the debtor remains to the Borrower.

The factoring service, where agreed part of the risk on non-payment or default of the debtor is transferred from the Seller to the Factor.

Financing based on the transfer of the assigned receivable.  The amount of financing is dependent on the agreed financing percentage.

The financing limit is the maximum amount  up to which the Factor will make advance payments under the assigned receivables.

The financing percentage is the maximum amount for financing of a certain receivables (invoice) determined in the contract as a percentage.

Factoring deal under which one of the parties is abroad.

The date of maturity of certain receivable stated in the invoice.

An additional requisite for invoices issued under a factoring agreement. The notice of assignment informs the debtor of the invoice that the receivable was transferred to a third party (the factor).

Document issued according to the agreement between seller and buyer, proving that the service provided or the goods purchased by the seller has been successfully delivered to the buyer.

The Supplier of goods or services which transfers its receivables to the factoring company.