factoring

Defined in Article 411, Capital Requirements Regulation (CRR)

Definitions over time (1)

1. 29/06/2021 – today applies on 12/11/2026 Article 411, Capital Requirements Regulation (CRR) Scope: Part VI

   For the purposes of this Part, the following definitions apply:

   ‘factoring’ means a contractual agreement between a business (the ‘assignor’) and a financial entity (the ‘factor’) in which the assignor assigns or sells its receivables to the factor in exchange for the factor providing the assignor with one or more of the following services with regard to the receivables assigned: an advance of a percentage of the amount of the assigned receivables, generally short term, uncommitted and without automatic roll-over; receivables management, collection and credit protection, whereby, in general, the factor administers the assignor's sales ledger and collects the receivables in the factor's own name; for the purposes of Title IV, factoring shall be treated as trade finance;

Used in (2 places in 1 provisions on 12/11/2026)

Capital Requirements Regulation (CRR) (2 in 1)

Article 411²