Factoring contract

Factoring shall be a financial service of buying and selling of existing non matured or future short-term monetary receivable, that arose from a contract of sale of goods or provision of services at home and abroad.

Participants in factoring shall be:

The assignor, who sells to the factor its receivable against the debtor that arose from a contract of sale of goods or provision of services, shall be a bank, a company, an entrepreneur, cooperative, registered agricultural holding, business association, institution and other legal entities that perform their activities for the purpose of gaining profit, with headquarters in the Republic of Serbia, that is, those entities with headquarters abroad, registered in accordance with domicile regulations;
The factor, who buys receivables from the assignor, shall be:
– a bank, in terms of the law governing the operations of banks;
– a company organized as a corporation or limited liability company, headquartered in the Republic of Serbia, which has the approval of the Securities Commision to perform factoring;
– a foreign bank or a foreign company – exclusively in international factoring;
The debtor shall be a bank, a company or an entrepreneur based in the Republic of Serbia, or such persons domiciled abroad, registered in accordance with the local regulation.

Subject of factoring

The subject of factoring may be:

any existing non matured or future, whole or partial, short-term monetary receivable that arose from a contract of sale of goods or provision of services, concluded between legal persons and entrepreneurs
any existing non mature or future, whole or partial, short-term monetary receivable of a legal legal entity, entrepreneur, cooperative, registered agricultural holding, business association, institution and other legal entities that perform activities for the purpose of gaining profit that has arisen under the contract of sale of goods or provision of services concluded with a beneficiary of the budget of the Republic of Serbia, the budget of an autonomous province, or the budget of the units of local government, as well with a beneficiary of the funds of the mandatory social insurance organizations
future receivable may be subject of the factoring only if it is determinable, and if the factoring contract contains information about who shall be a debtor of such receivable. Provision in the factoring contract that provides the sale of future receivable shall produce legal effect at the moment such receivable arises.

Subject of the factoring may not be a claim arising from the sale of goods or provision of services for personal, family or household purposes.

Types of factoring

For the purposes of the Law on factoring may be:

domestic
international.

According to the obligation of assuming the risk of debt collection, domestic and international factoring may be:

non-recourse factoring
recourse factoring.

Factoring may be done only on the basis of a contract concluded in written or electronic form.

The contract, whose subject has not been defined in accordance with the Law on factoring, shall not be considered a factoring contract in terms of the Law on factoring.

Factoring contract shall not be considered as a credit or loan contract, pursuant to the regulations of the Republic of Serbia, and business practices.

The contracting parties can agree that the factoring contract concluded in writing, authenticated (solemnized) by a notary public in accordance with the provisions of the law governing notary public notary and which contains an explicit statement by the assignor, i.e. the debtor in reverse factoring, agreeing that the factor, based on the factoring contract, after the maturity of the claim, can initiate enforcement proceedings (enforcement clause), has the force of an enforceable document, in the sense of the law regulating enforcement and security interest.

Factoring contract shall contain in particular:

data on the contracting parties
information on the type of factoring
basis and details of the receivable that is the subject of the contract
amount, method of calculation and payment of purchased receivable to the assignor
amount, method of calculation and payment of the compensation to the factor
right of factor to interest and other costs that may arise out of the contract
date of entering into the agreement
signatures of legal representatives of each contractual party, other person authorized to sign the contract or attorney of such persons.

Factoring contract shall cease to be valid after its concluded expiry date, and if it is not concluded for a fixed term, it may not cease before all sold receivables are not collected or compensated by the assignor.

During the duration of the factoring contract, the claim which is the subject of that contract cannot be terminated by offsetting (compensation) between the assignor and the debtor, unless otherwise defined by the factoring contract.

Factoring contracts of one assignor concluded with various factors, which as a subject have the sale of the same receivable, shall be prohibited, and any such subsequently signed factoring contract shall be null and void. Provisions of a factoring contract and general terms and conditions of the assignor or the factors that prescribe a rule different to the mentioned rule shall be null and void.

Last update: 12. 1. 2026.