The process by which a financial institution (the "factor") buys accounts receivable from a business firm (the client) at a discount, or lends money, and takes in return the assignment of such accounts. (See also Export Factoring.)

or business entity that owes money.

A medium of exchange; coined or stamped currency.

Negotiation of a draft, or other negotiable instrument, or letter of credit documents without the normal warranty on the part of the seller of the instrument/documents that the obligor named in the instrument (the "drawee," "payor," or "maker") will pay. n of a draft, or other negotiable instrument, or letter of credit documents without the normal warranty on the part of the seller of the instrument/documents that the obligor named in the instrument (the "drawee," "payor," or "maker") will pay.

The exporting country enter into a reciprocal agreement with an importing country, where both the exporter and importer find their interest. exporter and importer find their interest. exporter and importer find their interest.

Typically, a commercial invoice, bill of lading, insurance certificate, and consular invoice. bill of lading, insurance certificate, and consular invoice. bill of lading, insurance certificate, and consular invoice.

Document which shows the terms of a sale. Includes a full description of the goods, sale price, charges, and discounts.

The process of prompting for and obtaining payment of a debt or other outstanding obligation. Collection actions to secure payment of a past due balance. (See also Documentary Collection.) Documentary Collection.) Documentary Collection.)

A negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange.

The person, company, or bank upon which a draft is drawn.

A financing instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer.

Quality belonging to a document to transfer ownership of money, goods, or other items of value specified in the document by endorsement and/or delivery of the document.

The transfer of a negotiable instrument in such form that the transferee becomes a holder.

The person or company that sells or arranges to transport goods out of a country.

Compensation for the use of money.

Document signed by a transportation company ("carrier") to show receipt of goods for transportation from and to the points indicated.

A document issued by an insurance company covering a particular shipment of merchandise.

The presentation of documents, through banking channels, relating to the shipment of goods from an exporter (seller) for payment or acceptance by an importer (buyer). (See also Collections.)

(See Draft.)

The person, company, or bank upon which a draft is drawn.

The person, company, or bank that creates the draft and receives payment.

Quality belonging to a document to transfer ownership of money, goods, or other items of value specified in the document by endorsement and/or delivery of the document.

A negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange.

The party to which the rights under a transferable letter of credit are transferred.

Any company that may transport goods for payment, such as an ocean vessel, aircraft, truck, train, or courier service.

When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. (See also Draft, Drawee.)

The beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf. beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf.

A claim against a customer for services rendered or goods sold on credit.

The privilege of buying goods, services or borrowing money in return for a promise of future payment.

Goods held for sale or lease that are furnished under contracts of service, usually raw materials, work in process, or materials used or consumed in a business.

The net assets of an individual enterprise, partnership, corporation, including not only the original investment, but the gains and profits from the business.

A right to the payment of money such as agency notes, commercial paper, T-Bills, certificates of deposit (CD's), banker's acceptances and repurchase agreements.

The person or company that sells or arranges to transport goods out of a country.

Compensation for the use of money.

Document signed by a transportation company ("carrier") to show receipt of goods for transportation from and to the points indicated.

A document issued by an insurance company covering a particular shipment of merchandise.

The presentation of documents, through banking channels, relating to the shipment of goods from an exporter (seller) for payment or acceptance by an importer (buyer). (See also Collections.)

Writing one's name upon paper for the purpose of transferring the title.

The bank that receives a letter of credit issued by the applicant's bank (the issuing bank) and forwards it to the beneficiary without assuming any responsibility or liability other than to verify the authenticity of the letter of credit.

The person or company due payment in the letter of credit. Usually the exporter (seller).

Endorsement of a negotiable instrument on which the endorser remains responsible should the obligation not be paid.

Conditions in which the decision maker has to estimate the likelihood of certain outcomes.

Any money owed an enterprise, whether or not they are currently due.

A right to payment or other equitable remedy in the event of a breach of contract.

A contract granting the use and possession of real property for a specified time and for fixed payments.

Industrial products that are composed of farm and natural products.

The direct material costs, the direct labor costs and the factory overhead costs, that have entered into the manufacturing process but are associated with products that have not been finished.

A corporation may be defined as a voluntary association of persons who are organized under state or federal law and recognized by the law as having a corporate name, and being entirely separate and distinct from the people who own it; having continuous li

A partnership is defined as "an association of two or more persons to carry on as co-owners of a business for profit." While no particular form of contract is necessary to create a partnership, a partnership contract usually provides what the partners' ri

The unsecured promissory notes of large, financially sound corporations.

The exclusive rights, powers, privileges and immunities to property, real and personal, tangible and intangible.

The party (generally buyer/importer) for whose account a letter of credit is established.

The person or company due payment in the letter of credit. Usually the exporter (seller).

Also known as the opening bank. It issues its commitment to the seller in the form of a letter of credit.