The subject of factoring can be any existing, not yet due, or future, whole or partial, short-term monetary receivable arising from a contract for the sale of goods or provision of services, concluded between legal entities and entrepreneurs.

A short-term receivable is a receivable that becomes due for payment within one year from the date of sale of goods or provision of services, as defined by the contract for the sale of goods or provision of services.

No. Only legal entities and entrepreneurs can participate in factoring transactions.

No. The debtor, that is, your buyer, has the same obligation toward the factor as they had toward you.

No. Only non-overdue, non-problematic receivables can be subject to factoring.

VAT is not charged on factoring services.

You can assign the invoice on the same day it is issued, provided that the receivable meets the conditions to be subject to factoring.

No. You sell only the invoices you choose to sell, and when you wish to sell them.

There is no minimum invoice amount that can be subject to factoring.

According to the law, you are obliged to transfer those funds to our account without delay.

It’s important to note that such action by the debtor does not release them from the obligation to settle their debt with the factor.

No. By law, the buyer only needs to be notified.

Our business policy is such that, in some cases, you only send a notification informing the buyer that a certain receivable has been assigned to the factor, and that payment should be made to the factor, not to you.

For certain groups of debtors, it is necessary to obtain a statement in which the following is declared:

The debtor declares to the Factor that they will, without any conditions, complaints, or objections, make payment of the Receivable to the Factor upon maturity, into the Factor’s bank account. Accordingly, the debtor waives the right to raise any objections or claims they have or may later acquire against the Assignor, which could affect the amount of the Receivable or its full payment upon maturity (e.g., compensation objection, objection of non-performance by the Assignor, objection of simultaneous fulfillment of mutual obligations, objection or claim based on non-conforming delivery, and similar).

You can. However, if you have pledged your receivables as collateral for your bank loan, those receivables cannot be subject to factoring. In this case, you need to negotiate with the bank to amend the loan terms.

You can assign either part of the receivable (part of the invoice) or the entire receivable; the choice is yours.

Yes, just like any other receivable that can be subject to factoring.

Yes, provided they arise from the sale of goods or the provision of services and are not overdue.

Below is the opinion of the Ministry of Finance:

A business entity, as a creditor and assignor, may enter into a factoring agreement with a factor to sell its receivables against a user of funds from compulsory social insurance organizations, as the debtor from the underlying transaction.

Article 2, paragraph 2 of the Factoring Law (“Official Gazette of RS”, No. 62/2013 – hereinafter: the Law) stipulates that the subject of factoring may also be any existing non-overdue or future, whole or partial, short-term monetary receivable of a legal entity or entrepreneur arising from a contract for the sale of goods or provision of services concluded with a user of funds from the budgets of the Republic of Serbia, autonomous province budgets, local government budgets, or users of funds from compulsory social insurance organizations.

If a contract for the sale of goods or provision of services has been concluded between a particular user of funds from compulsory social insurance organizations (as debtor) and a business entity (pharmacy) as creditor, from which a receivable has arisen that is existing, monetary, non-overdue, and short-term (due within one year from the date of sale or service provision), we consider that, from the standpoint of the application of the Law, there is no obstacle for the business entity, as creditor and assignor, to enter into a factoring agreement with the business entity “CF” as factor, by which it will sell its receivables against the user of funds from compulsory social insurance organizations as debtor from the underlying transaction.

This opinion is given within the jurisdiction of the Financial System Sector, without entering into the provisions regulating the budget system, and based on the data provided in the request.

(Ministry of Finance opinion, No. 401-00-00759/2015-16 dated April 1, 2015)

No.

The request for obtaining approval from the Ministry of Finance to conclude a factoring agreement related to receivables that a company has from the Clinical Center of Vojvodina under the Agreement for cleaning and hygiene maintenance services in organizational units of the Clinical Center of Vojvodina dated April 26, 2016 (Opinion of the Ministry of Finance, no. 401-00-01124/2017-16 dated April 21, 2017).

Article 2, paragraph 2 of the Factoring Law (“Official Gazette of RS”, no. 62/2013, hereinafter: the Law) stipulates that the subject of factoring can be any existing, not yet due, or future, whole or partial, short-term monetary receivable of a legal entity or entrepreneur arising from a contract for the sale of goods or provision of services concluded with a user of funds from the Republic of Serbia budget, the autonomous province budget, or local self-government budget, as well as users of funds from compulsory social insurance organizations. Accordingly, the receivable that the said company has based on the mentioned agreement for providing services to the Clinical Center of Vojvodina, as a budget user, can be subject to factoring.

At the same time, the receivable subject to factoring, as stated in Article 2, paragraph 2 of the Law, must be a not yet due or future, whole or partial, short-term monetary receivable of a legal entity or entrepreneur arising from a contract for the sale of goods or provision of services. A short-term receivable, within the meaning of Article 2, paragraph 1, item 3) of the Law, is a receivable due within one year from the date of sale of goods or provision of service, as defined by the contract for the sale of goods or provision of services, which we emphasize considering the date of conclusion of the Agreement for cleaning and hygiene maintenance services in organizational units of the Clinical Center of Vojvodina mentioned in the relevant letter.

Finally, we point out that only companies meeting the conditions set out in Article 5 of the Law can engage in factoring activities, which include the obligation to obtain approval from the Ministry for performing factoring activities. Aside from this approval, the Law does not require obtaining approval for concluding individual factoring contracts.

In this regard, besides the aforementioned permissibility of concluding a factoring contract for receivables you have from a budget user, and meeting the conditions regarding the receivable to be subject of factoring, we inform you that the Law does not prescribe an obligation for the company, as the assignor in the factoring transaction, to obtain approval from the Ministry of Finance to conclude a factoring contract where the subject is receivables the company has from users of funds from the Republic of Serbia budget, the autonomous province budget, local self-government budget, or users of funds from compulsory social insurance organizations.