- 10 Jul
Ban On Assignment Legal Change
New legislation to prohibit ban on assignment clauses is due to go before Parliament in the autumn of 2018 (according to a recent article by our friends at Pulse Cashflow). If there are no issues with the legislation being passed, this could allow implementation for the 1st January 2019 schedule.
Assignment is the process by which factoring and invoice discounting companies take ownership of a sales invoice, issued by one of their customers. This enables the funding process against that invoice.
Ban on assignment clauses are featured in some sets of contractual terms and conditions, prohibiting invoices from being assigned to invoice finance companies, restricting the access of some companies to essential funding. Lifting the ability to ban assignment is likely to improve access of SMEs to business finance.
- 04 Feb
Ban On Assignment Has Been Outlawed
Receivables financing in the UK has taken a step forward as The Business Contract Terms (Assignment of Receivables) Regulations 2018 No. 1254 has come into effect in the UK, I previously wrote about the proposed legislatory change back in the summer. It will apply to qualifying contracts entered into on or after the 31st December 2018.The new legislation makes null the effect of "ban on...