Legal basis
- Law on Credit Institutions 2010
- Decree No. 39/2014/ND/CP
Content
Factoring is a form of granting credit to a seller or a buyer through the acquisition with the right to recourse to receivables or payables arising from the purchase and sale of goods, provision of services under contracts for the purchase and sale of goods and provision of services.
A financial company may carry out factoring activities when fully meeting the following conditions:
Firstly, having a team of qualified staff, professional capacity, facilities, technology, means, equipment and internal regulations as prescribed by law to carry out factoring activities stated in the License.
Second, fully meet the professional conditions for factoring activities prescribed by the State Bank.
Thirdly, finance companies established and operating before the effective date of Decree 39/2014/ND-CP may supplement factoring activities when fully satisfying the conditions specified above and the following conditions:
a. Business activities that are profitable at least in the year immediately preceding the year in which additional operations are requested;
b. Complying with regulations on prudential ratios in banking operations, debt classification and provisioning for risks continuously in all quarters of the year preceding the year in which additional operations are requested;
c. NPL ratio below the level prescribed by the State Bank;
d. Not be sanctioned for administrative violations in the field of currency and banking within 01 consecutive year from the time of request for additional activities.
Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nguyen Duc Trong via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: info@hongbanglawfirm.com hoặc lienheluathongbang@gmail.com
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