| Average Term | : | Average collection period for invoices/receivables, transferred to the factor |
| Bulk Factoring | : | It is a factoring type in which seller firm transfers all its receivables, arising from the sales, performed to small scaled customer in big quantities, and buyers are directed to make payment to the factor. In this method, collection of receivables and providing financing for these receivables are performed by the factor in definite periods. |
| Current Funds | : | Total of amounts, factoring commission, factoring charge and other expenses related to invoices, for which prepayment is made to the Seller, however, which has not stil been collected |
| Customer | : | Seller, using factoring service |
| Debtor | : | Real or legal people, purchasing goods or service from the customer and required to pay the value |
| Debtor transaction volume | : | Maximum invoice amount to be taken over for each debtor of the customer |
| Factor | : | Those, which take over receivables of the customer with factoring agreement |
| Factoring Agreement | : | Agreement, signed between customer and factor and determining conditions and legal frame of factoring transactions |
| Factoring Charge | : | Interest amount, accrued monthly upon prepayment |
| Factoring Commission | : | Commission, received upon each invoice by factor |
| Factoring of Agent | : | It is a factoring type in which factoring company transferred the collection of taken over receivables, to another company. It is informed to the buyer that it should make payments to this firm. |
| Factoring with Notification | : | It is a factoring type in which customer firm notifies to the buyer that it transfers its receivables, arising from time sales to the factor. Transferal notification is made to the buyer by customer in written and confirmation letter of buyer is provided. A transferal note is stuck on each issued invoice. |
| Factoring without Notification | : | It is a factoring type in which seller firm does not notify to the buyers that it transfers its receivables, arising from time sales to the factor, there is no transferal note in the invoices, sent to the buyers, collections are made by seller firm, factoring company provides only guaranty and financing service. |
| Guaranty Limit | : | Maximum guaranty amount, acknowledged by factor for each debtor |
| Invoice Discount | : | It is a factoring type in which receivables are followed and collected only by seller firm without any denunciation for buyers about payment of receivables, arising from time sales of seller firm, to the factor. Factoring company provides only financing service. |
| Irrevocable Factoring | : | It is a factoring type in which factor undertakes risk of non payment of the receivable completely within determined limit. In case term receivables are not paid by the buyer due to insolvency, factor returns to the seller and it may not demand prepayment back and if seller firm has still had receivable after factoring commission, factoring charge and bank expenses are deducted, balance is paid. In case seller firm does not want to benefit from financing service, all of the invoice amount under the guaranty is paid to the seller firm in 90th day as of due date by deducing factoring commission and bank expenses. |
| Limit Approval Notification | : | Notification of guaranty limit, assigned to the debtor by factor, tp the customer |
| Maturity Factoring | : | It is a factoring type in which factor makes payment to the seller firm irrevocably and without application of factoring charge and without waiting for collection of transferred receivables by adding days in a definite number upon sales terms, for relevant buyer firms. It is made for guaranty and collection purpose. |
| Prepayment | : | Cash payment, made to the customer upon taken over invoice amount |
| Receivable | : | Value of sold goods or provided service of the customer |
| Receivable Notification Form | : | Document, in which inventories of taken over receivables (invoices) are performed with factoring agreement |
| Reclamation | : | Commercial and legal defects, objections, disputes, physical defects, occurred in the goods and service |
| Revocable Factoring | : | It is a factoring type in which factor does not undertake risk of non payment of the receivable. Only financing and collection service is provided. In case receivables, transferred to Factoring company, are not paid by the buyer, factor returns it to the seller firm and it requests the performed prepayment from itself. |
| Seller Information Form | : | Document, indicating amount of goods or service sales of the customer and its conditions |
| Transferal Stamp | : | Note, stuck on the invoices, transferred to the factor, certifying the performance of transferal and indicating payment place |
