Glossary

Method of assigning trade receivables to a bank to obtain short-term financing. The Dailly Law allows a company to assign its receivables as soon as the invoice is issued, and sometimes even on receipt of the customer's purchase order.

After it has been lodged at the customs office, the customs declaration (SAD, simplified declaration, global supplementary declaration) is subject to a certain number of controls at the office, the nature and methods of which are left to the discretion of the customs service. After customs clearance, the declarations may be checked again on the basis of documents during a revision.

Document accompanying the delivery of goods. It is issued by the supplier. Signed by the customer, it certifies delivery. It is essential to make reservations on this delivery note if the defect is apparent (the reservations must be confirmed to the carrier by registered letter with acknowledgement of receipt in order to be enforceable).

it has been compulsory for invoices to state the payment date and the discount terms applicable if payment is made before the end of the negotiated period. "

A dispute by the buyer concerning the performance of the contract. The dispute may relate to the conditions of sale, the price, the quantity or the quality of the goods sold or the services provided. It may also be of a technical nature or relate to transport.

network of commercial intermediaries through which a good sold circulates from the producer to the consumer.

He sells the goods in the countries he represents through his network. He sells the product he has bought from you, so the foreign debt is owed to him.

A documentary credit is an undertaking by a bank (the issuing bank) acting on the instructions of the buyer (the principal) or on its own behalf to pay a beneficiary (the seller) against the presentation of documents proving that the goods have been dispatched. This method of payment is highly secure as it is irrevocable and confirmed.

With this technique, the seller gives his bank documents justifying the transaction (invoices, delivery notes, transport documents, etc.). The bank, acting as agent, must then ensure that the buyer pays for the transaction. Please note that in most cases, documentary remittance authorises the buyer to take possession of the goods, but payment is subject to the buyer's consent.

A distinction is made between commercial domiciliation (designating a company's postal address without the company being physically present there) and bank domiciliation (indicating the place where a commercial paper is to be paid by the debtor's bank).

These are receivables that are subject to provisions for asset impairment, the percentage of which is proportional to the risk of non-recovery. There are generally 3 types of provision: a provision linked to the age of the overdue invoices, a provision linked to the activation of the litigation procedure in respect of the debt and a provision for risk for any other case.

This is the measure of trade receivables or average time taken to pay customers, expressed in days' sales. There are two methods of calculation: 1) the accounting method expresses the ratio between outstanding trade receivables and sales for the period in question, expressed in days' sales. 2) the depletion method, which is the most commonly used, consists of subtracting from outstanding accounts receivable as many full previous months of actual sales and dividing the outstanding balance by the turnover for the oldest month in question. The main advantage of this method is that it neutralises seasonal variations in sales. DSO is one of the tools frequently used to assess the performance of a credit department.

Contractual date on which the buyer must make payment in accordance with the specific terms of the contract or the general terms of sale. Invoices are said to be due on the due date.