# Glossary

Terms used in the PNSL financing and repayment flow.

Product: PNSL API
Guides follow API reference 2.0.0 and event reference 1.0.0.
Canonical page: https://docs.axiym.io/pnsl-api/concepts/glossary

## PNSL

Pay Now, Settle Later. Axiym funds a client payment today; the receivable is
repaid when the client's funds arrive at Axiym. The PNSL API is the interface
for requesting that funding and managing its repayment.

## Payment Network

The institution that integrates with the PNSL API. It operates the payment
system in which its clients originate payments. The Payment Network onboards
clients, requests funding, repays receivables, and receives webhook events.

## Client

A legal entity whose payments can be funded through PNSL. Clients are usually
Money Service Businesses, Payment Service Providers, and similar businesses
that originate payments through the Payment Network. A client must complete
onboarding and be `ACTIVE` before funding can be requested. In the API a client is
addressed by its `clientId`; its client `code`, such as `AXI000221`, is used
only in payment memos.

## Client code

The client's short identifier, for example `AXI000221`. Payers put it in the
memo of a bank transfer so that Axiym can attribute the funds to the client.

## Onboarding status

| Status       | Meaning                                               |
| ------------ | ----------------------------------------------------- |
| `ONBOARDING` | The case is under compliance and underwriting review. |
| `APPROVED`   | The review passed; the client becomes `ACTIVE`.       |
| `REJECTED`   | The review failed; the client cannot be funded.       |

## Client status

| Status       | Meaning                                                                 |
| ------------ | ----------------------------------------------------------------------- |
| `ONBOARDING` | Registration submitted; compliance and underwriting review in progress. |
| `ACTIVE`     | Onboarding completed; the client is eligible for funding.               |
| `DISABLED`   | Access to PNSL services is restricted.                                  |

## Credit account

A client's financing facility for one currency and payment rail. It carries
the credit limit, the outstanding principal, and the unused capacity. Its
`balance` field shows the client settlement balance.

## Credit account status

| Status     | Meaning                                            |
| ---------- | -------------------------------------------------- |
| `PENDING`  | The account is being provisioned.                  |
| `ACTIVE`   | The account can be used for funding and repayment. |
| `DISABLED` | The account cannot be used.                        |

## Available balance

The financing capacity currently unused on a credit account, returned as
`availableBalance`. It decreases when a payment is funded and is restored when
a repayment settles.

## Client settlement balance

Funds received from the client and not yet used for repayment. Returned as
`balance` on the credit account.

## Settlement account

An account in Axiym that holds received funds. Each client has one per currency and
rail; its balance is the client settlement balance. The Payment Network has
its own settlement accounts, listed by the Account API, which hold funds that
could not be attributed to a client.

## Settlement reference (RF number)

The ISO 11649 creditor reference, such as `RF44 0004 4703 01`, issued for a
client's settlement account. A payer puts it in the memo of a bank transfer to
route the funds to that client.

## Unallocated funds

Funds received by Axiym that could not be attributed to a client. They are
credited to the Payment Network's settlement account, where they can be
applied to a client with a manual repayment or withdrawn.

## Payment rail

The settlement channel through which funds move between the Payment Network
and Axiym, such as a banking relationship or a blockchain network. Rail codes
are listed by `GET /settings/payment-rails`. When only one rail is configured,
it is selected automatically; when several are configured, `paymentRails`
selects the one to use.

## Payment transaction

The payment made by the client that the Payment Network asks Axiym to fund:
its identifier, timestamp, and payment data. Axiym records it on the
receivable.

## Funding a payment

The process of financing a client payment: the Payment Network submits the
payment transaction, Axiym creates a receivable and disburses the funds to the
funding destination, and the Payment Network executes the payment without the
client having to pre-fund it.

## Funding destination

The Payment Network's bank account that receives Axiym's disbursements for a
client, configured during onboarding as `disbursementAccount`.

## Disbursement

The transfer of the funded amount from Axiym to the funding destination. It is
recorded on the receivable as `disbursedTransaction`; when it settles, the
receivable becomes `ACTIVE`.

## Receivable

The obligation created when Axiym funds a payment. It records the funded
amount (`initialPrincipal`), the amount still outstanding
(`currentPrincipal`), the total due including interest and fees
(`repaymentAmount`), the payment transaction, and the disbursement and
repayment transactions. A receivable stays `ACTIVE` until it is fully repaid
(`PAID`) or canceled.

## Term and due date

The period of a receivable and the date by which it must be repaid. They are
part of the client arrangement and are not returned by the API. PNSL has no
instalment schedule.

## Repayment

The settlement of a receivable. Funds sent to Axiym are attributed to a
client and applied to its oldest active receivables first. A receivable can be
repaid in several repayment transactions, each recorded in
`repaymentTransactions`.

## FIFO repayment

The allocation rule: available funds go to the client's oldest active
receivable first, then to the next one.

## Manual repayment

Applying unallocated funds from the Payment Network's settlement account to a
client's receivables with `POST /clients/{clientId}/repayments`.

## Client transfer

Moving funds from a client's settlement account to the Payment Network's
settlement account with `POST /clients/{clientId}/transfers`, for example to
return an overpayment. The funds can then be withdrawn with the Account API.

## Webhook

A signed notification that Axiym sends to the Payment Network when a client,
credit account, or receivable changes. Webhooks report changes; read the
resource for its current state.