Glossary

The formal act by which the debtor, who has received the notice of the transfer/assignment, commits to making payments exclusively to the factor.

The debtor assigned to a factor's communication confirming the certainty and regularity of the credit, its collectability, and that the payment will be made to the factor.

The legal transaction by which the supplier transfers or assigns to the factor (transferee) its existing and/or future trade receivbales owed by the debtor; Law 52/91 applies to the assignment in the case of business loans and the articles 1260 and following of the Civil Code in the case of other types of receivables.

The maximum amount up to which (but not over) the factor takes upon the risk of the debtor's possible non-payment.

The amount owed by the factor as a counter-entry to the receivables assigned to it by the supplier. It corresponds to the nominal value of the receivables themselves, usually in capital, before the fees due to the factor, or of any sums for any reason withheld by the debtor.

The natural or legal person / entity required to make the payment of one or more receivables to the supplier.

Interest rate applied following a delayed payment.

It is the estimated amount of receivables to be transferred which is declared by the supplier and refers to a specific period of time.

The factoring company with which the supplier signs a receivables transfer agreement. It also indicates the foreign factor or foreign correspondent company (bank) which the factor makes use or will make use of in the performance of its services internationally.

Commissions, charges, and any other additional considerations agreed upon between the supplier and the factor for carrying out and providing services (by the later) concerning the factoring contract.

A factoring product where the factor does not waive the debtor's solvency guarantee provided by the supplier, and therefore does not assume the risk of possible non-payment by part of the debtor.

A factoring product where the factor waives the debtor's solvency guarantee provided by the supplier, thus assuming the risk of possible non-payment by part of the debtor.

Reference index of the money market to calculate the interest rate to varying degrees as a basic reference value.

It is the remuneration due, at an agreed upon periodicity, by the supplier or the debtor assigned to the factor by reason of the advance payment of the consideration for the transfer of receivables made to the factor, or the granting of, by the factor, a payment extension for debt, financing transactions, or a delayed payment of the debtor.

A factoring product through which the supplier (transferor) obtains, by way of the factor (transferee), the credit for the amount of receivables transferred on a predetermined and certain date (generally the receivables' natural maturity date) regardless of the effective payment of the debtor. If agreed upon, the factor may grant the customer (debtor) a deferral for an established period.

A communication, in accordance with the law, to the debtor of the receivables assignment, whose content explains that the debtor is required to make payments exclusively to the factor.

The amount of receivables sold and not yet collected as of a certain date.

Payment made for the transfer/assignment of receivables by the factor to the supplier of the consideration, according to the Factoring Agreement at the time of the actual collection or maturity of the assigned receivables, or, in the event that the debtor's insolvency risk is assumed, on the date agreed upon with the supplier.

Payment made by the factor to the supplier as a percentage of or for the total amount due for the credit transfer, made upon the supplier's request and at the discretion of the factor prior to the expiry date or collection of the assigned/transferred credit(s).

The monetary credit that have arisen or will arise from contracts entered into or to be stipulated by the supplier in the exercise of the business or whichever legal title it uses, and therefore the total sums that the supplier is entitled to receive from the debtor in payment for supplies, goods, and/or services provided.

Document of the economic and contractual conditions applied to the customer(s).

The factor's client company, also known as the counterparty in the factoring contract.

The legal transaction by which the supplier transfers or assigns to the factor (transferee) its existing and/or future trade receivbales owed by the debtor; Law 52/91 applies to the assignment in the case of business loans and the articles 1260 and following of the Civil Code in the case of other types of receivables.

The total amount of assigned / transferred receivables over a defined period of time (monthly or yearly).

The date of debit or accreditation of a sum of money starting from which the interest payable by the supplier or the debtor begins.

The power contractually attributed to the factor to withhold sums and offset its debts towards the supplier with its own receivables of any kind even if not yet liquid or due.

The factor's assumption of the risk of non-payment of the assigned debtor. There is a determined ceiling showing the maximum limit of the amount of receivables which the factor intends to assume the risk of.