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|SOURCE:||Joint Banking Group (JM6)|
For general information on UN standard message types see UN Trade Data Interchange Directory, UNTDID, Part 4, Section 2.6, UN/ECE UNSM General Introduction
This message also occurs in the following versions of this standard:|
D94B, D95A, D95B, D96A, D96B, D97A, D97B, D98A, D98B, D99A, D99B, D00A, D00B, D01A, D01B, D01C, D02A, D02B, D03A, D03B, D04A, D04B
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.
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).
This message may be applied for both national and international settlements. It is based on universal commercial practice and is not dependent on the type of business or industry.
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).
See UNTDID, Part 4, Chapter 2.6 UN/ECE UNSM - General Introduction, Section 1.
See UNTDID, Part 4, Chapter 2.6 UN/ECE UNSM - General Introduction, Section 2.
This section should be read in conjunction with the Segment Table which indicate mandatory, conditional and repeating requirements.
A service segment starting and uniquely identifying a message. The message type code for the Credit risk cover message is RECECO.
Note: Credit risk cover messages conforming to this document must contain the following data in segment UNH, composite S009:
A segment specifying the function and status of the message.
A segment identifying the reference of another message or transaction related to this message.
A segment specifying the date and, when required, the time at which the message has been created as well as other dates and times relevant to the transactions, e.g. request date.
A group of segments identifying the name and address of the parties involved in the transaction, their contacts and financial institution information.
A segment identifying the name and address of the parties associated with the credit risk cover message.
A segment identifying a person or a department for the party specified in the NAD segment and to whom communication should be directed.
A segment providing a communication number for the party identified in the NAD segment and optionally for the contact identified in the associated CTA segment.
A segment identifying the financial institution (e.g. bank) and relevant account numbers for the parties involved, where necessary.
A group of segments identifying the amounts of the credit covers, the currency, the date, the request, the payment terms related to the credit cover.
A segment identifying the credit cover.
A segment giving the monetary amounts of the current credit cover and one or more new credit covers.
A segment identifying the currency of the credit cover.
A segment specifying the dates related to the credit cover, such as expiration date, date valid from or the order date (latest shipment date).
A segment specifying a request for a credit cover, a reply to that request and the reasons for the reply.
A segment specifying the percentage of the own risk, related to the credit cover.
A segment specifying the payment terms, as agreed between seller and buyer.
A segment specifying the response to the request, in coded form.
A segment identifying the order number, when necessary.
A service segment ending a message, giving the total number of segments in the message and the control reference number of the message.
|BGM||Beginning of message|
|CCD||Credit cover details|
|FII||Financial institution information|
|NAD||Name and address|
|PAT||Payment terms basis|
|├─UNH Message header||×1||(M)|
|├─BGM Beginning of message||×1||(M)|
|├─Segment Group 1||×99||(C)|
|│─├─NAD Name and address||×1||(M)|
|│─├─CTA Contact information||×1||(C)|
|│─├─COM Communication contact||×5||(C)|
|│─└─FII Financial institution information||×1||(C)|
|├─Segment Group 2||×99||(C)|
|│─├─DOC Document/message details||×1||(M)|
|│─├─MOA Monetary amount||×1||(C)|
|│─├─CCD Credit cover details||×1||(C)|
|│─├─PCD Percentage details||×1||(C)|
|│─├─PAT Payment terms basis||×1||(C)|
|│─├─FTX Free text||×1||(C)|
|└─UNT Message trailer||×1||(M)|