Communication, if any, by which the Assigned Debtor, having received notification through the Factor of the assignment of the receivable made by the Supplier/Customer, confirms that it has taken good note of the assignment and acknowledges the Factor’s qualification as Assignee to which it shall make payment exclusively.
Amount equal to the nominal value of the assigned receivables, net of any sums for any reason withheld by the Debtor (due to any credit notes issued by the supplier, discounts, rounding off, price reductions, deductions, (due to any credit notes issued by the Supplier, discounts, rounding off, price reductions, deductions, offsets and anything else the Debtor withholds at the time of payment) due from the Factor to the customer at the time of actual collection (recourse factoring) or at the due date of the assigned receivables within the agreed terms (maturity factoring), or, in the case of assumption of the risk of the Debtor’s insolvency, at the date contractually agreed between the Factor and the assignor (non-recourse factoring).
The natural or legal person – Italian or foreign – required to make payment of one or more receivables assigned to the Factor.
The legal transaction by which the customer transfers its existing and/or future receivables to the Factor on the basis of Law 52/1991 or on the basis of Articles 1260 et seq. of the Civil Code.
Transfer of receivables pursuant to Law 52/1991, whereby the customer company undertakes to transfer to the Factor all receivables arising from the relationship with the assigned debtors for a predefined period, usually twenty-four months.
Commission that remunerates the Factor’s management and collection service for the assigned receivables. It is applied either flat (one-off) or monthly on the face value of the assigned receivables. The commission may vary depending on the type, duration, method of collection of the assigned receivables and the number of debtors offered for assignment.
The natural or legal person – Italian or foreign – required to make payment of one or more receivables assigned to the Factor.
Commission which, in addition to the credit management and collection service, also rewards the guarantee service in the event of insolvency of the assigned debtors.
Total amount of payment advanced made by the Factor to the Supplier/Customer on which interest accrues.
Assumption by the Factor of the risk of late payment of the assigned receivables through a contract by which the Supplier/Customer obtains a regular flow of payments with no charge for any delay. This is possible due to the Factor’s automatic crediting of receivables on their natural due dates.
This type of credit integrates the Factor’s management, advance payment and guarantee services with regard to the risk of insolvency of the assigned receivables. The Factor carries out an accurate assessment of the Debtors and determines specific reference ceilings for each of them, i.e. it quantifies an amount up to which the receivables will be guaranteed. In the event of insolvency, the Factor will make the payment under guarantee on the agreed date, thus replacing the insolvent Debtor.
Type of intervention that does NOT provide for notification to the assigned debtor of the assignment of the credit that has taken place between the parties (customer and Factor).
Amount of receivables sold and not yet collected at a certain date.
Maximum amount of receivables for which the Factor is willing to guarantee the solvency of the Debtor, subject to contractual limitations.
Commission to be calculated for late payment of the assigned receivables.
Credit approval request form with which the assignor asks the Factor for the credit limit on the assigned debtors and defines the approval criteria, which the Factor then sends to the assignor for possible acceptance by registered letter, fax or certified e-mail.
The legal entity, customer of the Factor, i.e. the counterparty to the factoring agreement, represented by the General Conditions for Future Factoring transactions.
Progressive amount of total receivables sold over a defined period of time.
Faculty contractually attributed to the Factor to withhold some amounts and to offset its own debts with its own receivables for any reason owed to the supplier, even if not yet liquid or collectable.
This type of transaction integrates credit management and mobilisation services. The guarantee against the risk of the debtors’ insolvency is excluded. The Factor handles the management of all trade receivables from the agreed Debtors. It is possible to integrate a service of a financial nature consisting in the advance payment of the receivables (normally to the extent of 80%).
