Factoring is no longer restricted to banks

From April 26, 2009 receivables based financing can be provided by any commercial organisation.

Federal Law #56-FZ of April 9, 2009 'On Changes to Article 825 of the Part Two of the Civil Code of the Russian Federation and Article 10 of the Federal Law 'On Coming into Legal Force of Part Two of the Civil Code of the Russian Federation' Becoming Inoperative' amends article 825 of the Civil Code.

Previously article 825 of the Civil Code required that a contract of factoring could only be concluded with a credit institution or a non-bank organisation with the relevant licence. At the same time licensing legislation did not include factoring in the list of licensed activities.

The law comes into force on April 26, 2009.

 

May 11, 2009