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  UN/EDIFACT  D.03A (Batch) Syntax version 3 Issue date 2003-06-23  
  Message type specification RECECO
 
 
RECECO 2 Credit risk cover message  
  Date:
2003-06-10

Source:
TBG5 Finance

0. INTRODUCTION
This specification provides the definition of the Credit risk cover message (RECECO) to be used in Electronic Data Interchange (EDI) between trading partners involved in administration, commerce and transport.

1. SCOPE

1.1 Functional definition
Factoring companies provide their clients (the seller) protection against the risk of credit losses on sales to the buyers. Credit protection is provided on each approved customer (buyer) of the seller.

The message will be used to apply for preliminary credit assessment (used during negotiation with prospective clients); apply for credit protection; reply to credit requests; revise amount and expiry date of credit protection and terms; cancel credit protection.

The message will serve at the same time as the request for credit risk cover and as the answer (approval or rejection to that request).

1.2 Field of application
The Credit risk cover message may be used for both national and international applications. It is based on universal practice related to administration, commerce and transport, and is not dependent on the type of business or industry.

This message may be applied for both national and international settlements.

1.3 Principles
The flow of communication is from Seller to Factor (request), and from Factor to Seller (answer). The Seller must provide information regarding the Buyers (name, address, etc.) and information regarding the expected amount of sales to be risk covered. The Factoring company will provide an answer, after due credit investigation.

The credit cover may be a 'line cover' or an 'order cover'. A line cover relates to the sales of one seller to one buyer, up to the agreed limit. An order cover relates to a specific order (or shipment).

- one credit cover may relate to one or more line covers;
- one credit cover may relate to one or more order covers;
- for each distinct period there is only one line cover;
- one credit cover must relate to one buyer;
- one credit cover must relate to one seller.

2. REFERENCES
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 1.

3. TERMS AND DEFINITIONS

3.1 Standard terms and definitions
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 2.

4. MESSAGE DEFINITION

4.1 Data segment clarification
This section should be read in conjunction with the segment table which indicates mandatory, conditional and repeating requirements.
 
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