---
updatedAt: 2025-02-14T23:07:07.000Z
agentTools:
  projectIndex: https://developer.modifi.com/llms.txt
---

# Glossary

Here you can learn the main terms we are using across our API documentation.

**Company** - The main entity. In the case of Seller Financing it is the seller company.

**Seller** - The exporter in a trade transaction. Usually applies to Seller Financing.

**Buyer** - The importer in a trade transaction. They are the purchaser of the goods from the seller.

**Company user** - Main contact person. In the case of Seller Financing they are the contact person on the seller side.

**Trade partner user** - Main contact person at the counterparty in the trade transaction.

**Trade partner** - The counterparty in a trade transaction. For example, the trade partner in Seller Financing is the buyer.

**Financing quote** - The initial request for financing. A defined set of details and documents should be provided.

**Financing trade** - Submitted financing quote. After providing all the details and documents the financing quote can be submitted. Only after submitting the financing quote will become a valid financing trade.

**Financing trade status** - The status of the financing approval process. The financing process gets started after submitting a financing quote and there are 4 statuses: PENDING, APPROVED, CANCELLED, DECLINED.

* PENDING: The MODIFI risk team is reviewing the financing trade details.
* APPROVED: The MODIFI risk team checked and approved the terms of the financing trade.
* CANCELLED: The financing trade was cancelled by the seller or buyer.
* DENIED: The financing trade was declined by the MODIFI risk team.

**Payout status** - The status of the payout to the seller. The payout process gets started after receiving a trade confirmation from the trade partner. There are 4 statuses: PENDING, DONE, FAILED, CANCELLED.

* PENDING: The MODIFI risk team is waiting for a trade confirmation.
* DONE: The payout was processed.
* FAILED: The payout was not processed due to internal issues.
* CANCELLED: The payout process was cancelled by the seller or buyer.

**Settlement status** - The status of the settlement payment from the buyer to MODIFI. The settlement process gets started after the trade was confirmed by the trade partner. There are 5 statuses: CREATED, DUE, OVER\_DUE, PAID, CANCELLED

* CREATED: The Settlement payment was created with a due date.
* DUE: The payment is pending until the due date.
* OVER\_DUE: The payment is pending after due date.
* PAID: The settlement payout was sent to MODIFI. The Risk Deposit can be paid to the seller in case of Seller Financing.
* CANCELLED: The payment was cancelled by the trade partner.

**PayoutType** - Payout types consist of three types:

* **Advance Rate**- The first payout amount which is paid after receiving the trade confirmation and excluding processing, transaction and setup fees. For example, an Advance Rate of 80% means that 80% of the invoice amount minus processing, transaction and setup fees will be paid.
* **Risk Deposit**- The remaining payout which is paid after receiving a payment from the counterparty (the buyer in case of Seller Financing). For example, a Risk Deposit rate of 20% means that 20% of the invoice amount will be paid.
* **Full Payout**- The total amount minus processing, transaction fees and setup fees will be paid out.

**Payout split percent** - The split of the payout amount in percentage. For example, 80% means that the first payout payment consists of 80% from the invoice amount minus processing, transaction and setup fees.