Factoring of Future Receivables is a financial instrument in which a legal entity – the assignor – sells its future receivables to the factor.

In accordance with the Factoring Law, the subject of factoring can be any existing, non-matured, or future short-term monetary receivable, in whole or in part, arising from a contract for the sale of goods or the provision of services, concluded between legal entities and entrepreneurs.

For a future receivable to be eligible for factoring, in addition to meeting general conditions, the legal entity intending to sell the future receivable must have a signed contract with the buyer of goods or services, meaning that the receivable must be determinable in accordance with the Factoring Law.