Purchase Order Financing BRS

This document aims to define the Business Processes and the Business Transaction of the Purchase Order Financing in the supply chain finance.
The Business Process is the detailed description of the way trading partners intend to play their respective roles, establish business relations and share responsibilities to interact efficiently with the support of their respective information systems.
Each Business Transaction is realized by an exchange of Business Documents (also called messages). The sequence in which these messages are used, composes a particular instance of a scenario and are presented as use cases in the document.
The business documents are composed of Business Information Entities (BIE), which are preferably taken from libraries of reusable business information entities. The BIEs are out of scope of this document.
The purpose of the project is to develop a UN/CEFACT business standard guidelines for Purchase Order Financing (also known as pre-shipment finance) request.
Purchase Order Financing (POF) is a financing option provided by a finance provider for trading parties that lack the funds to pay their suppliers (e.g. manufacturers), or Sellers that need cash in advance and on this basis can also offer extended payment terms to their Buyers. A purchase order from an acceptable buyer is a key ingredient in motivating the finance in addition to the ability of the seller to perform under contract with the buyer. Once payment is collected from the buyers who signed the purchase orders, the purchase order financing company will be reimbursed for its outlays and collect its fee. Purchase order financing is a variation on factoring, which is typically based on invoices.