Subject of factoring - Law on factoring - Dragana Djordjevic, attorney

Law on Factoring (“Official Herald of the Republic of Serbia”, Nos. 62/2013 and 30/2018) regulates the concept and subject of factoring, factoring participants, conditions and manner of factoring, types of factoring, rights and obligations of factoring participants, factoring contract, reverse factoring, and supervision of factoring. According to provisions of the Law on Factoring (“Official Herald of the Republic of Serbia”, Nos. 62/2013 and 30/2018), 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.

Requirements for Conducting Factoring

A company incorporated in the Republic of Serbia to conduct factoring may undertake tasks of buying and selling existing non-matured or future short-term monetary receivables that arose from a contract of sale of goods or provision of services at home and abroad if it meets the requirements of the Law on Factoring (“Official Herald of the Republic of Serbia”, Nos. 62/2013 and 30/2018) in respect of capital and has approval to conduct the business of factoring. Continue reading Requirements for Conducting Factoring →

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 →