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

The UK Factoring Association, ABFA, and International Factors Group, IFG, formed a strategic partnership in 2007 to carry out a study whose primary objective is to collate, compare and contrast the various legislative/regulatory models for factoring and receivables financing in existence in different EU jurisdictions and other major countries performing factoring services.  This study gives a compendium of the different legal, fiscal and other environments appertaining to receivables financing in 24 of the 27 EU countries (no information received on Bulgaria, Luxemburg & Malta) and in 4 important non EU “benchmark” countries, Norway, Switzerland, Turkey and the USA.

                        

The value of this study is in bringing this important information in one place for reference purposes.

To compile the necessary information knowledgeable individuals within the industry have been asked to answer a series of questions about their own environment and we were most appreciative of the assistance we received.
The study consists of 13 questions touching most of the areas of receivable financing and factoring.  The questionnaire is produced in full following this introduction.

Due the complexity of some of the questions, there are instances where responses are partial, or in some cases, due to underdeveloped nature of the industry of receivables financing and factoring, no answer has been forthcoming.

All answers to the questions have been given by individuals in good faith and to their best knowledge of the environment of factoring and receivables financing existing in their respective countries at the time of responding.  However the study should not be regarded as a guarantee for being legally executable in any applicable Court or any executable taxation and/or other similar competent rules as might be applicable, neither for granting any legal consistency or correctness, either by the parties answering the questions and/or ABFA and/or IFG and or IDH being the executing body for collecting and compiling the answers. It has to be understood that no checks on the correctness of any answer have been carried out. Please keep in mind that answers are given on the basis of the rules in existence in the second half of 2007 and that any subsequent changes will not be reflected in this document. It is noted that with effect from Jan. 1st 2008 some rules in some countries have already changed.

The answers to question 12 have been completed by the official web-sides of

Uncitral (http://www.uncitral.org/unictral/en/unictral_texts/payments/2001Convention_receivables.html)
Unidroit ( http://www.unidroit.org/english/conventions/1988factoring/main.htm)

ABFA (Asset Based Finance Association), IFG (International Factors Group), SA IDH Inkasso und Service GmbH and all individuals who have answered the questions will have no responsibility whatsoever on the correctness and legal enforceability of any subject contained in this study.

It is strongly recommended to look for professional advice from competent parties (legal advisers/auditors/accountants/tax-advisers etc.) before starting any activities in factoring or receivables finance in any of the countries listed in this study.

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