Glossar Trade & Export Finance
Glossar (F)

Factoring

Sales financing in which the factor purchases all the account receivables of an exporter arising from delivery of goods, minus the factoring fee and interest for the period up to the (average) due date of the receivables. For explanations please consult Factors AG, Weberstrasse 5, 8036 Zurich, Tel. +41-44-298 32 62, a subsidiary of UBS.

FCL (= Full Container Load)

In contrast to the LCL (= Less than Container Load) (explanation see under «LCL») the carrier/ship owner takes an already fully loaded container for carriage from the shipper (exporter).

FCR (= Forwarder's Certificate of Receipt)

Confirms that the goods have been accepted for carriage to, or held at the disposal of, the consignee.

FIO

Explanation see under «Free In, Free Out, Free In and Out»

Force majeure

Banks assume no liability for the consequences arising out of interruption of their business operations due to force majeure. See under UCP Art. 36.

Forfeiting

Purchasing of claims by the bank, mainly resulting from medium- or long term export transactions. The discounted amount is being paid out without recourse on the seller of the receivables. The predominant payment instruments are bill of exchange, promissory note or documentary credits available by deferred payment. The debtor usually must secure the payment obligation by aval, by an irrevocable and assignable payment guarantee or by a documentary credit of a highly rated bank in his country. Forfeiting is available in all main currencies.

Forfeiting (under documentary credits)

Purchase by the bank of individual claims, payable in the future, under, among other things, documentary credits whereby the bank renounces any recourse to the seller of the debt. The bank credits the value of the documents minus the forfeiting interest. For forfeiting of claims under a documentary credit please contact your UBS customer advisor.

Forwarder's documents

Transport documents issued by any party other than a carrier, owner, master or charterer. See UCP Art. 14l.

Franchise (in connection with insurances)

If, for example, an insurance certificate states that insurance cover is subject to a franchise of 5%, claims will only be payable if any losses exceed this figure. Insurance documents indicating a franchise are accepted under documentary credits as long as they are not expressly prohibited. See UCP Art. 28j.

«Free In»,«Free Out»,«Free In and Out» clauses

As an integral part of the delivery terms concerning maritime freight, the definition «free in – free out» covers the acceptance of costs and the liability for the movement by a specified contract party of the designated goods transported from the pier into the booked hold of the vessel and/or vice versa. Where such a clause appears on the B/L, costs of loading or unloading will not be borne by the carrier but are for shipper’s or consignee’s account.

Freely negotiable (documentary credits)

When documentary credits are stated as «freely negotiable», the beneficiary of the documentary credit has the right to present his documents at a bank of his choice for «negotiation». See UCP Art. 6a.

Freight notation

Reference on the transport document which indicates whether the freight costs were paid in advance by the shipper (= „freight prepaid») or are to be paid by the consignee when the goods arrive at the destination (=«freight payable at destination») or («freight collect»). In charter contracts notations such as «freight payable as per charter party», etc. are also common.

Full set

All the originals of a particular document (normally bills of lading). The number of originals is usually indicated on the document itself.