Glossary

Buyer: The buyer is the purchaser of the goods/services provided by the supplier and also the recipient of the invoices.

Supplier: The supplier provides the ordered goods/services and is the beneficiary of the accounts receivables.

Supply Chain Finance, terminology: Optimization of the profitability of the entire supply chain through a sustainable integration of procurement, invoicing and financing processes on one single online platform.

SCF Payment Order: Irrevocable payment order as a part of the UBS Supply Chain Finance solution.

NRA (non-revocable acceptance): The irrevocable acceptance and confirmation of an invoice effected by the buyer.

DPO (days payments outstanding): Average number of days until a company pays the suppliers.
                                    DPO = (liabilities/cost of sales)*360

DSO (days sales outstanding): Average number of days until receivables are paid (incoming payment on the supplier's account). DSO = (receivables/sales proceeds)*360

Supplier Contract: Commitment by the supplier to take part in the Supply Chain Finance program.

Compliance: "The term compliance stands for the adherence to legal provisions and regulatory standards and the fulfillment of other fundamental ethical standards and requirements that are generally set by the company itself." Eberhard Krügler

Credentials: All documents and instruments required to participate to the program.

L/C (letter of credit): Irrevocable commitment of the issuing bank in form of a binding payment obligation following submission of the conforming letter-of-credit documents.

Factoring: Sales financing in which the factor purchases the receivables of a client arising from a delivery of goods minus the factoring fee and the interest for the time until the (average) due date of the receivables.

CSR (Corporate Social Responsibility): Corporate responsibility towards the environment, market, employees and other stakeholder groups.

Reverse Factoring = Supply Chain Finance = Confirming®

UNGC (United Nations Global Compact): Strategic initiative for companies that decide to base their business activities and strategies on ten universally recognized principles of human rights, labor standards, environmental protection and fight against corruption.