Factoring, Receivables Finance & ABL - A study of Legal Environments across Europe

In 2007, the Asset Based Finance Association (ABFA) and the International Factors Group (IFG), both founding members of the EUF, started a research project on the general legal framework for factoring and similar forms of commercial finance in the member states of the European Union and four non-member states. Nearly four years later, it was time for an update of this legal study, and both ABFA and IFG considered that the EUF as umbrella organisation to 14 national factoring associations and two international factoring associations representing all the EU member states is the most apt organisation to take on the task of updating and carrying on this project.

To compile the necessary information for updating the legal study, the EUF approached legal experts and versed individuals from within the factoring industry and asked them to answer thirteen questions about their own national legal environment. The questionnaire contained questions ranging from regulatory prerequisites for factoring operations over tax issues to prohibitions on assignments. The updated study is a compendium of the answers received to this questionnaire, reflecting the different legal, fiscal and other environments appertaining to receivables financing in all of the 27 EU member states and in five non-member states, Norway, Russia, Switzerland, Turkey and the USA, as important "benchmark" countries for the factoring industry. In addition to these answers, the study contains a summary of the answers in table form as well as a conclusion which makes a comparative analysis of the answers, highlighting certain disparities and national characteristics as well as congruencies.

This compilation and analysis of the legal framework for factoring and similar forms of commercial finance is apparently unique, both with regard to the scope of the research as well as the study's up-to-dateness. The value of this legal study lies in bringing important legal information together in one place for reference purposes.

Nevertheless, it has to be kept in mind that this updated legal study cannot and should not replace individual and case-specific legal counselling by lawyers who are experienced in the national legal system in question.

Notwithstanding, the legal study updated by the EUF facilitates quick access to compact and comprehensible answers to a number of fundamental questions on the legal treatment of factoring in different countries.

The updated legal study "Factoring, Receivables Finance & ABL - A Study of Legal Environments Across Europe 2011" is available for view and download to IFG members only at this link

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