SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate a knowledge and understanding of the requirements of import and export factoring for discounting 
SAQA US ID UNIT STANDARD TITLE
12742  Demonstrate a knowledge and understanding of the requirements of import and export factoring for discounting 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for any learners who work in the factoring industry. It is intended as an overview of the import and export factoring would be appropriate for all learners working in factoring.

Persons credited with this unit standard will be able to demonstrate knowledge and understanding of international trade, basic international finance and the process of initiating import/export factoring, compare import/ export factoring with a letter of credit, and describe risk management principles associated with import/export factoring. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
There is open access to this standard. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Demonstrate knowledge and understanding of international trade. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The nature and structure of international trade transactions for importing and exporting goods are understood and explained in own words according to generally accepted business practice. 

ASSESSMENT CRITERION 2 
2.The internationally accepted procedures for conducting import and 

ASSESSMENT CRITERION 3 
3.export transactions are understood and explained according to accepted international business protocol. 

ASSESSMENT CRITERION 4 
4.The general risks associated with international trade transactions are specified according to generally accepted business practice in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 5 
5.The specific risks associated with fluctuations in foreign exchange are specified according to generally accepted business practice in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 6 
6.The nature and type of insurance that can be obtained to manage the risk associated with international finance is specified according to generally accepted business practice in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 7 
7.The meaning of different shipping terms is understood and explained according to accepted international business protocol. 

SPECIFIC OUTCOME 2 
Demonstrate a knowledge and understanding of basic International Finance. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The different types of financial instruments associated with international trade are listed and explained in own words according to generally accepted international business. 
ASSESSMENT CRITERION RANGE 
Bills of exchange, promissory notes, drafts, telegraphic transfers, international loans, guarantees, and letters of credit Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 2 
2.The concepts of bank and country risk are understood and explained according international banking and factoring practice. 

ASSESSMENT CRITERION 3 
3.The concept of exchange rate risk in international trade finance is understood and explained in own words with use of examples. 

ASSESSMENT CRITERION 4 
4.Five reported exchange rates are interpreted and their meaning explained according to the value of the currencies in relation to each other. 

ASSESSMENT CRITERION 5 
5.Five currencies are converted to Rand according to the daily reported exchange rate. 

ASSESSMENT CRITERION 6 
6.Rand is converted into five different currencies according to the daily reported exchange rate. 

ASSESSMENT CRITERION 7 
7.Standard financial products and services for minimising exchange rate risk are specified according to accepted business and banking practice. 

SPECIFIC OUTCOME 3 
Compare import/export factoring with Letter of Credit. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The process and procedures for establishing a letter of credit are compared to those associated with import/export factoring according to accepted international banking and factoring practice. 

ASSESSMENT CRITERION 2 
2.The parties in establishing a letter of credit are compared to those associated with import/export factoring according to accepted international banking and factoring practice. 

ASSESSMENT CRITERION 3 
3.The rights and responsibilities of the parties to a letter of credit are compared to those associated with import/export factoring according to international banking and factoring practice. 

ASSESSMENT CRITERION 4 
4.The basic costs of the two modes of finance are compared according to local banking and factoring practice. 

ASSESSMENT CRITERION 5 
5.The basic risks to the client of the two modes of finance are compared according to accepted international business practice. 

ASSESSMENT CRITERION 6 
6.The basic risks to the agent/ financier of providing the two modes of finance are compared according to accepted banking and factoring practice. 

ASSESSMENT CRITERION 7 
7.The financier's/agent's recourse in the event of default on the agreed payment and terms of payment are compared according to accepted banking and factoring practice. 

ASSESSMENT CRITERION 8 
8.The conditions that would indicate which form of finance would be more appropriate are specified according to accepted banking and factoring practice. 

SPECIFIC OUTCOME 4 
Demonstrate knowledge and understanding of the process of initiating import/export factoring. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The process and procedure regarding how an import/ export factoring transaction would take place is explained according to accepted international practice and the financier's factoring policy and procedure. 

ASSESSMENT CRITERION 2 
2.The nature of relationships and rules of co-operation between local and international factoring houses' are explained according to accepted international practice and the financier's factoring policy and procedure. 

ASSESSMENT CRITERION 3 
3.The general legal and statutory requirements for an importer are specified according to the current local legislation. 

ASSESSMENT CRITERION 4 
4.The general legal and statutory requirements for an exporter are specified according to the current local legislation. 

ASSESSMENT CRITERION 5 
5.The process, procedure and requirements to collect money due from a local buyer for an invoice factored by a foreign exporter are explained according to the company's factoring policy and procedure. 

ASSESSMENT CRITERION 6 
6.The process, procedure and requirements for a local exporter wishing to factor invoices for goods sold to a foreign buyer are explained according to the company's factoring policy and procedure. 

SPECIFIC OUTCOME 5 
Describe risk management principles associated with import export factoring. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The risk management principles from the clients' perspective, associated with import/export factoring are listed according to the financier's factoring policy and practice. 

ASSESSMENT CRITERION 2 
2.The risk management principles from the financier's perspective associated with import/export factoring are listed according to the company's factoring policy and practice. 

ASSESSMENT CRITERION 3 
3.The approaches to management of the key risks associated with import factoring are listed and explained in line with the financier's factoring policy and practice. 

ASSESSMENT CRITERION 4 
4.The approaches to management of the key risks associated with export factoring are listed and explained in line with the financier's factoring policy and practice. 

ASSESSMENT CRITERION 5 
5.The details of specific risk management practices are listed and explained according to the financier's factoring policy and procedure. 

ASSESSMENT CRITERION 6 
6.The implications of the risk management practices for the administration of import factoring are explained in line with factoring policy and practice. 

ASSESSMENT CRITERION 7 
7.The implications of the risk management practices for the administration of export factoring are explained in line with factoring policy and practice. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1.Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2.Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3.Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
General knowledge of the factoring industry.
Knowledge of the company's range of products and services, and the associated rules and regulations relating to factoring.
Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function.
General understanding of the specific risks and relevant policies relating to factoring. 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO COLLECTING 
  • To collect, organise and critically evaluate information when the risk management principles and their implications for administration are identified and explained. 

  • UNIT STANDARD CCFO COMMUNICATING 
  • To communicate effectively both verbally and in writing when the concept of exchange rate risk in international trade is explained with use of examples. 

  • UNIT STANDARD CCFO SCIENCE 
  • To use technology effectively when calculating currency conversions. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Legal Requirements

    All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task.

    Terminology

    Supplier - A term used in factoring to refer to the party who supplies the invoices for discounting. The term is used to distinguish this party from the terms used for debtors and creditors.
    Offer - a term used to refer to the invoices presented to a factoring house for discounting. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 
    Elective  96401   National Certificate: Export Administration  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.