Allocation
A BNP Paribas Factor staff member assigns a payment to an account upon
receipt. After reconciliation, he pays off the corresponding invoice partially or
in full.
Approval
By issuing an approval for a set purchaser, BNP Paribas Factor agrees to take
over your debts with this purchaser under the modalities determined in your
factoring contract.
The approval can include an outstanding amount limit (see approval ceiling).
Before submitting any invoices, you must obtain BNP Paribas Factor
approvals to suit your requirements for each of your customers.
Any unused approval for six consecutive months are cancelled automatically.
Bills received but not due
Total amount of bills received from your customers which are not yet due.
Commission on promissory notes
Commission calculated on a pro rata basis on the amount of the promissory
note issued by BNP Paribas Factor.
Contract number
This eight-figure number is allocated to you when you sign your contract and
allows us to identify you.
Conventional subrogation
This is the legal medium whereby the ownership of your invoices are
transferred to BNP Paribas Factor (Art. 1249, 1250 and subsequent articles
of the Civil Code).
Customer
Business which has signed a factoring contract with BNP Paribas Factor =
your company.
Direct payment
Settlement made to you directly by your customer in payment of an invoice
assigned to BNP Paribas Factor.
You must then reimburse us the amount upon receipt by returning the
payment to us as is if it is a cheque of bill or by sending us the equivalent
amount if it is a transfer.
Drawing right
Financing method at the client request depending on his requirements.
Factoring
This is a set of three services offered by a factor to businesses so that they
can outsource the management of their accounts receivable:
 m a n a g in g in v o ic e s a n d t h e ir r e c o v e r y ,
 g u a r a n t e e a g a in s t in s o lv e n c y ,
 fin a n c in g .
Factoring account
Account in which all operations relating to your factoring contract are
recorded:
 p u rch a s e o f yo u r d e b ts ,
 w it h d r a w a l o f v a r io u s c h a r g e s ,
 fin a n c in g , . . .
Its credit balance is the amount available for financing.
Factoring fees
Fees received by BNP Paribas Factor in payment of services rendered in
managing customer accounts and the performance guarantee.
This is a flat calculation on the amount of each invoice submission.
Fees on promissory notes
Fees calculated on a pro rata basis on the amount of the promissory note
issued by BNP Paribas Factor.
Financing
This is the advance of sums available in your factoring account following take
over of your invoices.
You can request financing when submitting invoices or at any moment
according
to
your
needs
and
within
the
balance
available.
We provide this financing by transfer(s) and/or promissory note(s),
according to the terms of your contract.
Financing account
This is the cash-flow account.
It’s used to calculate the interest due for a period.
Guarantee against insolvency
Insurance against the insolvency of a company (risk of final failure of your
customers = ceasing of payments, judicial recovery or liquidation) or
performance guarantee of the payment of a debt.
This guarantee is issued within the limit of approved amounts.
Guarantee fund
A guarantee fund is constituted, depending on the provisions in your contract
to guarantee the reimbursement of any sum you may owe BNP Paribas
Factor.
The sums thus allocated as guarantee will only be paid back to you after final
closure of accounts.
Guarantee limit (or approved amount)
It determines the amount of the guarantee granted by BNP Paribas Factor for
a specific purchaser.
The guarantee amount is given for an amount including VAT for each main
establishment identified by its SIREN number.
Invoices due, not paid
Invoices past their due date and not yet paid in full.
Invoices for collection or unavailable
Invoices purchased by BNP Paribas Factor but not financed.
The amount of these invoices is available as and when BNP Paribas Factor
collects payments from your customers.
Invoice purchase
When invoices are assigned to the Factor, they are credited to the factoring
account, representing the purchase of these invoices and their transfer of
ownership.
Notification
Your customers are advised of the existence of a factoring contract between
you and BNP Paribas Factor.
It takes the form of a registered letter with acknowledgement of receipt sent
by you to your customers and affixing the subrogation statement on your
invoices.
Outstanding customer used amount
The outstanding customer used amount is the total of purchased, unpaid
invoices minus credit notes (including bills received but not due).
Outstanding purchaser amount overrun
Outstanding amount for a purchaser higher than the guarantee limit.
BNP Paribas Factor doesn’t guarantee any invoice potentially purchased for a
purchaser overrunning the agreed limit.
Outstanding purchaser used amount
This is the outstanding used amount for a purchaser, i.e. the amount of
invoices purchased for this purchaser and not paid, minus credit notes
(including bills received but not due).
Pre-calculated interest
During financing, interest is paid on the financed part by transfer to the
provisional financing period base using the formula: IP = MF x TF/360 days x
DP, where:
 > I P = Pr e -calculated interest,
 MF = Am o u n t fin a n c e d ,
 TF = An n u a l fin a n c in g r a t e ,
 DP = Pr o v is io n a l fin a n c in g p e r io d ( in n u m b e r o f d a y s ) .
Purchaser
Customer of the business which has signed a factoring contract = your
customer.
Purchaser number
A nine-figure number is allocated to each of your purchasers (different from
its SIREN). In the BNP Paribas Factor computer system, this number signifies
exclusively
the
relationship
between
you
and
your
customer.
Your own customer account numbers can be used if you so request.
Recovery
BNP Paribas Factor chases in a variety of ways, by post or telephone, to
recover payment of assigned invoices from your purchases on the dates
agreed on the invoices.
Revolving
If the limit on your client is not enough when purchasing the invoice, the part
of the invoice not covered will be manaegs as non guaranteed. Settlements
received after will "free" the limit which allows to guarantee the amounts not
yet guaranteed, in the limit of the approval
Submission
This is the set of invoices assigned to BNP Paribas Factor.
A submission comprises one copy of invoices bearing the subrogation
statement - you send the originals directly to your customers -, the
subrogatory discharge and the supporting documentation provided for in
your contract.
Subrogation statement
The subrogation statement must be affixed to every copy of invoices issued.
It tells your customers that the invoices have been assigned under a
factoring contract and must, therefore, be settled directly to
BNP Paribas Factor.
Subrogatory discharge
The subrogatory discharge confirms the transfer of ownership of debts to us.
It must be sent duly completed, signed and bearing your company stamp
with each invoice submission.
It summarises the invoices sent to BNP Paribas Factor and the desired
financing modalities.
Supporting documentation
Documents backing up an invoice (written order, delivery note, etc.).
The supporting documentation defined in the conditions of your contract
must be sent to BNP Paribas Factor with your invoice submissions.
Unavailable or collection account
When your invoices cannot be financed or when a payment you are
expecting is not yet due, these operations are moved into an unavailable or
collection account, a sub-account of the factoring account.