Factoring - Instrument Of Financing In Business Practice –Some Important Legal Aspects

Factoring Contract in the Light of Drafting the Montenegrin Civil Code

“…On the other hand, the insolvency of the economy creates the need for the development of factoring, and in the future period activities in this sector are expected to grow. 13 Following the practice primarily from the 11 Milenković-Kerković, T.; Atanasković, Ž.: Ugovor o faktoringu u Srbiji -Zbog čega je potrebno regulisati faktoring?, 7(9) 2013, Pravo i privreda -časopis za privrednopravnu teoriju i praksu, p. 197-215.…”

“…(accessed at: https://www.cbcg.me/slike_i_fajlovi/eng/fajlovi/fajlovi_publikacije/fin_stabilnost/financial_stability_report__2017.pdf). 13 According to the data of the Central Bank of Montenegro, during 2016, the blocked amount on the basis of the debt of judgment debtors in the process of enforced collection increased to € 628.3 million, or 16.7% of GDP (compared to 15.1% of GDP in the end 2015, or 3% of countries in the region, Montenegro has regulated the most important issues relevant to the factoring, by adopting the Law on Financial Leasing, Factoring, Purchase of Receivables, Micro-Lending and Credit-Guarantee Operations (hereinafter: Law on Provision of Financial Services), as well as issues related to the regulation of factoring contract. In this paper, certain provisions of this Law will be analyzed in detail, with the aim to identify whether there is any room for further improvement.…”

Assets Based Lending: The Advantages and Disadvantages of Factoring

“…One of the drawbacks of factoring for the client may be the cost that (sometimes) is relatively high (Bărbuţă-Mişu, 2013: 576), and regarding the risk to which the entity is exposed, it is related to the risk of insolvency or other obstacles in collecting customer's debts (Spasić et al, 2012).…”