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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate a knowledge and understanding of the specific risks related to factoring as a lending vehicle 
SAQA US ID UNIT STANDARD TITLE
12737  Demonstrate a knowledge and understanding of the specific risks related to factoring as a lending vehicle 
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  9 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 risks associated with this type of lending and thus would be appropriate for all learners working in factoring.

Persons credited with this unit standard will be able to demonstrate knowledge and understanding of risk factors associated with debtors as security, demonstrate knowledge and understanding of the risks associated with collecting a business`s debtors, demonstrate knowledge and understanding of the risk of poor quality of debtor administration, demonstrate knowledge and understanding of the risk of business deterioration and describe risk management principles associated with 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 risk factors associated with debtor's as security. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The uniqueness of debtor's as a form of security is explained with reference to other forms of lending security in line with factoring principles. 

ASSESSMENT CRITERION 2 
2.The concept of debtor's as a security with a monthly fluctuating value is illustrated with examples, according to accepted financial principles and in line with factoring policy and practice. 

ASSESSMENT CRITERION 3 
3.The relationship between fluctuations in the value of debtor's and the risk to money's advanced is explained in own words in line with factoring principles and practice. 

ASSESSMENT CRITERION 4 
4.The spread of risk across a number of different debtors is explained in relation to what represents a reasonable risk in line with factoring principles and practice. 

ASSESSMENT CRITERION 5 
5.The volume and nature of the business's trade is explained and its impact on the value of the debtor's book is illustrated with examples. 

SPECIFIC OUTCOME 2 
Demonstrate a knowledge and understanding of the risk associated with collecting a business's debtor 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The concept of the collectable value of a debtor's book is explained in own words with examples, according to generally accepted financial principles and in line with the company's factoring policy and practice. 

ASSESSMENT CRITERION 2 
2.The general principles of collection of a business's debtor's book are explained according to accepted debt collection procedures and the terms of the factoring agreement. 

ASSESSMENT CRITERION 3 
3.Risk categories associated with individual debtors are explained according to generally accepted financial principles and in line with the company's factoring policy and practice. 

ASSESSMENT CRITERION 4 
4.The number and size of the different debts is explained as a condition affecting the value of the book in the event of collection according to generally accepted financial principles and in line with the company's factoring policy and practice. 

ASSESSMENT CRITERION 5 
5.The spread of risk across a number of debtors is explained as a condition affecting the value of the book in the event of collection according to generally accepted financial principles and in line with the company's factoring policy and practice. 

ASSESSMENT CRITERION 6 
6.The legal implications for the lender of collection in the event liquidation are explained according to prudent business practice and the company's policy and procedure. 

ASSESSMENT CRITERION 7 
7.The practical and financial implications of collection in the event of liquidation are explained according to the company's practice and business policy. 

ASSESSMENT CRITERION 8 
8.The practical and financial implications of collection in the event of business deterioration are explained according to the company's practice and business policy. 

SPECIFIC OUTCOME 3 
Demonstrate knowledge and understanding of the risk of poor quality financial administration 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The characteristics of effective debtor and general ledger administration are outlined according to generally accepted book keeping practice and in line with factoring policy and practice. 

ASSESSMENT CRITERION 2 
2.Typical characteristics of poor administration are explained with the use of examples. 

ASSESSMENT CRITERION 3 
3.The relationship between poor administration and the risk to factoring is explained with the use of examples in line with factoring policy and practice. 

SPECIFIC OUTCOME 4 
Demonstrate knowledge and understanding of the risk of business deterioration. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The financial elements of a business' trade are identified according to generally accepted financial principles and lending practice. 

ASSESSMENT CRITERION 2 
2.The role of debtors in representing the financial stability of a business's trade is explained in own words with examples according to generally accepted financial principles and in line with factoring policy and practice. 

ASSESSMENT CRITERION 3 
3.The factors affecting the ongoing sustainability of the business' trade are identified and their relationship to business sustainability is explained using a business analysis example. 

SPECIFIC OUTCOME 5 
Describe risk management principles associated with factoring. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The risk management principles associated with factoring are listed according to the financier's factoring policy and practice. 

ASSESSMENT CRITERION 2 
2.The approaches to management of the key risks associated with factoring are listed and explained in line with the financier's factoring policy and practice. 

ASSESSMENT CRITERION 3 
3.The details of specific risk management practices are listed and explained according to the financier's factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The implications of the risk management practices for the administration of factoring lending 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.
  • 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 processing factoring transaction. 
    		•


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
  • To identify and solve problems when the implications of the risk management practices for the administration of factoring lending are explained. 
    		•

    UNIT STANDARD CCFO COLLECTING 
  • To collect, organise and critically evaluate information when typical characteristics of poor administration are explained and illustrated with the use of examples. 
    		•

    UNIT STANDARD CCFO DEMONSTRATING 
  • To demonstrate an understanding of the world as a set of related systems when the factors affecting the ongoing sustainability are identified and their relationship to sustainability explained. 
    		•

    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

    3.2 Terminology
  • Supplier
  • Offer 
    		•

    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  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  BANKSETA 


    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. AAR Trading and Projects (Pty) Ltd 
    2. Advanced Assessments and Training (Pty) Ltd 
    3. Africa Glory Empowerment Services 
    4. Assured Vocational Skills Institute (Pty) Ltd 
    5. Brainwave Project 707 Pty Ltd 
    6. Brainwave Projects 707 
    7. Compuscan Academy 
    8. DC Academy 
    9. Delmas Development Centre 
    10. Fachs Business Consulting and Training 
    11. Gigimo Tourism Academy 
    12. MAT 007 (PTY) LTD 
    13. Matibidi Raphela Investments (Pty) LTD 
    14. Octomate Education Pty Ltd 
    15. Octopus Training Solutions 
    16. Production Management Institute of Southern Africa (Pty) Ltd 
    17. RIAPHATHUTSHEDZA 
    18. SIGNA ACADEMY (PTY) LTD 
    19. Sinovuyolethu Trading (Pty) Ltd 
    20. THE SHERQ CENTRE OF EXCELLENCE PTY LTD 


    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.