Pooled payment is a type of business in which buying groups act as agents between vendors and customers.

Buying groups (pooled payment agents) negotiate prices and conditions centrally with vendors on behalf of their members (customers). When a member does business with the vendor, a purchasing contract is concluded between the vendor and the customer. The buying group usually charges the vendor a del credere commission for guaranteeing payment of the merchandise ordered. The vendor is contractually bound to bill the merchandise via the buying group, which is the central payment point for all member liabilities from purchases. For the service of collecting and paying invoices, the buying group charges its members a pooled payment fee and a del credere commission for guaranteeing payment. Both these commissions are usually paid by the vendor.

In handling the payment, the buying group usually receives the invoices directly from the vendor and enters them in the system. It then settles the invoices and bills the members of the buying group at the end of the period.

• The members pay the total amount owed at the end of the period to the pooled payment agent.
• The buying group pays the vendors all due invoices, deducting a pooled payment commission and, if applicable, a del credere commission.

Factoring is a financial transaction between a specialized financial institution (a factor) and a vendor or seller. The factor buys the vendor/seller claims from goods and services sold on a one-time or continual basis and takes over the management of these claims. In general, the factor usually pays the vendor before the customer pays the factor. The main advantage for companies using the services of a factor is that they spend less time and money planning and monitoring cash flow.

The factor serves the following purposes:

• Financing

• Provision of services

• Del credere

Credit card management is a business process that is required when a private customer uses a credit card to pay for his or her purchases from a retailer. The credit card institute issues a promise to pay to the retailer, guaranteeing that the institute will pay the purchase price minus the usual fees. At a predefined point in time, the retailer transfers the data for all the credit card transactions over a particular period to the credit card institute. The credit card pays the total amount minus the discount. The institute also enter the data and creates statements on behalf of the banks issuing the credit cards to the customers. These statements are then sent to the relevant credit card holders.

Agency business accounts for up to 40% of business transacted by Japanese trading companies.

The trading company acts as an agent between two business partners, initially putting customer and vendor in touch with each other. In the event of a deal being made between a customer and vendor, a purchasing contract is concluded between them. Unlike in the case of pooled payment, the customer pays the vendor directly. For putting the vendor and customer in contact with each other, the trading company charges a commission which is mostly paid by the vendor. (In certain circumstances, the customer also pays a commission for the service.) As the deal between the vendor and the customer proceeds, the trading company is only informed that a deal has taken place and is paid a commission.

Since the trading company does not handle any payments involved in the deal and only acts as a broker, the company does not have to enter any vendor invoices or documents. With all the other types of business mentioned here, however, open item accounts are managed for both the accounts payable and receivable.

To meet the various requirements detailed here, Agency Business makes use of separate logistics documents containing information about the vendor and the customer:

• Settlement requests and settlement request lists/posting lists

• Vendor billing documents

• Del credere settlements in pooled payments require this logistic document so that del credere obligations can be clearly separated from those resulting from purchases.
• In import and export business, additional costs are incurred by the various partners over and above those for the actual business transaction. Vendor billing documents provide an integrated method of settling delivery costs and other charges with various partners.

• Remuneration lists