• Ban On Assignment Legal Change

    Ban on assignment law changesNew 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.

    Update: New legislation goes to Parliament 10/09/18

    Legislation passes into law.

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