Glossary

Discountable asset: A document with credit content that can be subject to a discount for its purchase or sale to obtain early liquidity. Some examples include invoices, assignments of economic rights, contracts, promissory notes, court rulings, among others.

Discount rate: The percentage subtracted from the nominal value of a discountable asset to negotiate it at a value lower than its future realization value.

Credit risk: The possibility that a person or company may fail to fulfill the payment of a debt or financial obligation within the agreed period. This risk is present in multiple transactions, including loans and the negotiation of discountable assets.

Interest rate: The cost associated with receiving money as a loan. Similarly, it is the return received from an investment or by the lender. It is expressed as a percentage of the loaned or invested amount over a set period of time.

Inflation: The general and sustained increase in the prices of goods and services within an economy over a period. This reduces the purchasing power of money, meaning the amount of goods or services that can be bought with a fixed sum of money.

Endorsement: It is the act by which a person transfers the ownership or right of a document with financial value, such as an invoice, contract, or check, to another person, usually by signing the back of the document.

Liquidity: Refers to the ability of an asset to quickly convert into cash without losing its value. The more liquid an asset, the easier it is to sell or convert it into cash.

Professional Manager: An expert or company specializing in managing investments, assets, or projects. Their role is to maximize the return on entrusted assets by managing risks and making informed decisions.

Participation agreement: A collaboration agreement whereby two or more parties associate to carry out a specific economic activity, such as an investment project, without creating a separate legal entity. Benefits and losses are shared as agreed.

Active Manager: The person responsible for making strategic and tactical decisions for asset management, aiming to achieve the best returns through buying and selling assets based on market analysis.

Hidden partner: A person or entity involved in an investment or business without revealing their identity publicly. Their participation is typically confidential but is part of the agreement.

Expected profit: The average value expected from an investment or project, considering the various risks associated with the transaction.

Assignment of economic rights: The process by which a person transfers their rights to the economic benefits of an asset to another person, either partially or fully, usually in exchange for payment.

Alternative investments: Investments that do not fall into traditional categories such as stocks, bonds, or bank deposits. Instead, they include real estate, private equity, art, commodities, and others, offering portfolio diversification.