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 or an entrepreneur based in the Republic of Serbia, and also those persons with headquarters abroad, registered in accordance with the local 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 ministry responsible for finance affairs 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. Continue reading Factoring contract →