Shakhovets Anastasia
Shakhovets Anastasia

Senior lawyer

Phone numbers
+38 (073) 007-44-54 +38 (073) 007-44-49

Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.

Contact now
Debt collection under the factoring contract

Debt collection under the factoring contract

A factoring contract is becoming an increasingly popular tool for entrepreneurs who seek to improve their liquidity and protect themselves from non-payment by debtors. However, as in any agreement, conflict situations related to debt collection may arise in it.

Below we will consider in detail the nuances of debt collection under a factoring agreement that your business may face. Having read this information, you will be able to better prepare for such problems and take measures to effectively solve them.

What is a factoring agreement?

Factoring is a financial agreement under which a company (factor) buys its receivables from a seller (supplier) for a certain fee. This allows the seller to receive cash immediately without waiting for payment from their customers (buyers).

Factoring can be beneficial for both parties:

  • For the seller: he gets quick access to funds, improves his liquidity and reduces the risks associated with non-payment.
  • For the factor: he earns commission income and can diversify his asset portfolio.

Photo Debt collection under a factoring contract

Peculiarities of debt collection under a factoring contract: the main difficulties

Debt collection under a factoring contract has a number of features that distinguish it from other types of debt collection:

  1. Parties to the contract: the debt will be collected by the factor, not the seller who concluded the factoring contract.
  2. Grounds for collection: the factor has the right to demand payment from the debtor on the basis of the factoring contract and primary documents confirming the delivery of goods/services and their value.
  3. Collection measures: A factor can use all legal methods of debt collection like any other creditor.

However, in addition to these features, factoring can bring certain difficulties in debt collection:

  1. Insolvency of the debtor: If the debtor turns out to be insolvent, the factor can lose a significant part of its funds.
  2. Dispute by the debtor of the debt: the debtor can dispute the very fact of the debt, its amount or the grounds for its collection.
  3. Complex legal procedures: the process of debt collection can require significant time and financial costs, as well as in-depth knowledge of the law.

Methods of debt collection under a factoring contract with the help of a lawyer

A lawyer with experience in factoring can help you effectively collect a debt from a debtor using the following methods:

  1. Pre-trial settlement: a lawyer will negotiate with the debtor for the purpose of voluntary repayment of the debt.
  2. Foreclosure: If a pre-trial settlement is not possible, the attorney will file a lawsuit and represent your interests in the lawsuit.
  3. Enforcement: A lawyer can take steps to enforce an action, such as seizing the debtor’s property.
  4. Execution of the court decision: after receiving the court decision, the lawyer will help you in its execution, that is, in collecting the debt from the debtor.

Debt collection under a factoring agreement can be a complex and time-consuming process that requires knowledge of the law, experience in this field and understanding of the nuances of factoring agreements. Solving such problems on your own can lead to loss of time, money, and sometimes the debts themselves.

Photo Debt collection under a factoring contract

Why should you contact a law firm?

Recovery efficiency and speed:

  • Experienced lawyers know how to correctly draw up all the necessary documents, take measures to secure a claim, as well as negotiate with the debtor and represent your interests in court.
  • Thanks to the knowledge of legislation and court practice, lawyers can choose the optimal debt collection strategy, which will allow you to save time and get a result as quickly as possible.

Protection of your rights and interests:

  • A law firm will be by your side throughout the debt collection process, protecting your rights and interests.
  • Experts will help you avoid mistakes, and will also check the legality of all actions performed in relation to you.

Reducing risks and costs:

  • Contacting lawyers in the early stages of the problem allows you to minimize the risks associated with debt collection and save your money.
  • Lawyers will help you correctly assess the situation, plan actions and optimize debt collection costs.

Competence and experience:

  • Professional lawyers who specialize in debt collection under factoring contracts have in-depth knowledge of legislation, court practice and subtleties of factoring agreements.
  • They have the skills of conducting negotiations, representing interests in court and working with executive documents.

Peace of mind and confidence:

  • By contacting lawyers, you can be sure that your case is in safe hands.
  • You will not need to study legal nuances, worry about complex procedures and be responsible for making important decisions.

Contact our law firm “Prykhodko and Partners” right now to get professional help in collecting debts under the factoring contract. We will help you get your money back quickly, efficiently and legally.

If you want to order a consultation or find out the cost of legal support, fill out the form below.

Calculate the cost of services

1 question

Are you interested in debt collection under a factoring agreement?

Yes
No

2 question

Do you need a service urgently?

Yes
No

3 question

Are you in Kyiv?

Yes
No

Is it possible to go through the bankruptcy procedure if the debt is less than 180,000 UAH?

Bankruptcy can be filed regardless of the amount of debt — there are no minimum limits set by law. However, if the amount of debt is less than UAH 180,000, it is usually more advisable to agree on debt restructuring, as bankruptcy may be economically unprofitable.

If I am not in Kyiv, can I cooperate with you?

Yes, we work remotely throughout Ukraine and even with clients abroad! We have many clients from Lviv, Odessa, Dnipro, Kharkiv, Cherkasy and other settlements.

Communication is carried out in any way convenient for you.

Successful cases on the topic:

You may also need:

Bankruptcy certificate for legal entities

Read more

Lawsuit for recognition of a natural person as bankrupt

Read more

Restructuring of foreign currency loan

Read more

Restructuring debt on a mortgage loan in foreign currency

Read more

Protection of creditors’ rights in bankruptcy

Read more

Debt restructuring under a credit agreement

Read more

Consultation on bankruptcy of an individual

Read more

Credit restructuring in a bank/microfinance organization

Read more

Restructuring of PrivatBank credit card debt

Read more

Individual bankruptcy

Read more

Debt write-off in bankruptcy

Read more

Sanitation of the debtor in bankruptcy cases

Read more
Articles on the topic:
20%
discount
If we do not
call back
during the day
Consultation
Law company
Leave a request for legal assistance right now:
9+ years on the market
70+ professional practitioners
Fixed price
Online / offline consultation

Bankruptcy

Agreement on the assignment of the right of claim An appeal against a court decision on debt collection Anti-collector Application for initiation of bankruptcy proceedings Assignment of the right of claim under the credit agreement Bankruptcy certificate for legal entities Bankruptcy of a legal entity Bankruptcy of a utility company Bankruptcy of an individual Bankruptcy of an individual entrepreneur Bankruptcy of individuals Certificate from the Unified Register of Enterprises in respect of which bankruptcy proceedings have been initiated Challenging the executive inscription of the notary on the loan Checking the availability of loans for an individual Collect the debt from the guarantor Consultation of a lawyer regarding credit debts Consultation on bankruptcy of an individual Corporate Bankruptcy (Company Bankruptcy) Credit debt collection Credit lawyer Credit restructuring in a bank/microfinance organization Debt cancellation Debt collection for housing and communal services Debt collection under a credit agreement Debt collection under the factoring contract Debt collection under the loan agreement Debt restructuring for housing and communal services Debt restructuring under a credit agreement Debt write-off for credit / microloans Debt write-off in bankruptcy Declaration of bankruptcy Development of a contract of assignment of the right of claim Development of a debt receipt Development of a loan agreement between individuals EBRD lending Executive proceedings for communal services Fictitious bankruptcy File for bankruptcy Financial rehabilitation and bankruptcy of enterprises Forced collection of debt Forced collection of debt under a credit agreement Gas debt restructuring How to get a certificate of bankruptcy / no bankruptcy? Individual Bankruptcy Lawyer Judicial debt restructuring outside of bankruptcy proceedings Lawyer for credits and microloans (MFI) Lawyer under Art. 200 of the Criminal Code – Illegal actions with transfer documents, payment cards and other means of access to bank accounts, electronic money Lawyer under Article 302 of the Criminal Code – Creation or maintenance of places of debauchery and solicitation Legal advice on loans Legal analysis of credit agreements Legal assistance with microcredits (MFIs) Legal support of the assignment of the right of claim Legal support of the bankruptcy procedure Liquidation of a company through bankruptcy proceedings Liquidation of a legal entity Liquidation of LLC with debts Liquidation of the company under the bankruptcy procedure Mortgage write-off under the bankruptcy procedure Obtaining a certificate of absence of bankruptcy Opening of bankruptcy proceedings Protection of creditors’ rights during the liquidation of a legal entity Protection of creditors’ rights in bankruptcy Protection of the rights of consumers of banking services Recognizing a natural person as bankrupt Removal of seizure from the account for payment of wages Removal of seizure from the debtor’s accounts Restructuring debt on a mortgage loan in foreign currency Restructuring of electricity debt Restructuring of foreign currency loan Restructuring of foreign currency loan Privatbank Restructuring of foreign currency mortgage Restructuring of heating debt Restructuring of the debtor’s debts Sanitation of the debtor in bankruptcy cases Sanitation of the enterprise Statement of claim for collection of debt for utility services Statement of claim for debt collection Statement of claim for debt collection under a credit agreement Statement on insolvency of a natural person Support of creditor in the bankruptcy procedure Support of creditors in the debt collection procedure Support of creditors in the restructuring procedure Support of the bankruptcy procedure of a legal entity Support of the bankruptcy procedure of an individual The bankruptcy procedure of an individual Voluntary liquidation of a legal entity through the bankruptcy procedure Write off a loan for a mortgage (housing) Write off a mortgage loan Write-off of accounts payable Write-off of Borgs for utility services Write-off of loan debt for the guarantor