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universul juridic magazin
Revista Română de Drept Privat

Reverse factoring – funding the un-fundable?

Reverse factoring is an innovative program providing optimization solutions for the management of the working capital of the participants in the distribution chain of goods and services. The financing solution of the suppliers (in this case, companies in the field of small and medium-sized enterprises) have the benefit of a low cost and of full financing of the trade receivables resulting from the trade relationship with the purchaser, as it is based on the reliability of the purchaser and on the acceptance of the invoices by the latter prior to the presentation by suppliers for financing purposes. Moreover, it does not affect the financial indebtedness degree of suppliers, and allows them to take out other loans for investments, for the purpose of the business development. The contractual structures proposed for debate may be of interest from the perspective of the mechanism of developing and producing legal effects, but also in terms of certain legal qualifications of certain rights and obligations of the financer in close connection with the payment instruction received from the purchaser (the assigned debtor). The use of an electronic platform for the issuance and service of certain legal acts under the reverse factoring program, brings again the validity of the conventions relating to the sustaining power of evidence into the discussion, as well as the need for clarification of the concept of computer readable documents