07 cases where factoring is not allowed in credit institutions

05:40, 11/07/2024

Circular 02/2017/TT-NHNN was issued by the State Bank of Vietnam on May 17, 2017, specifically listing the cases in which factoring is not allowed in credit institutions.

Accordingly, Circular 02 stipulates that factoring entities are not allowed to factor the following accounts receivable and accounts payable:

- Arising from the sale and purchase of goods, provision of services that are prohibited by law.- Arising from the sale and purchase of goods, provision of services with a remaining payment term of more than 180 days from the date the factoring request is received.- Arising from the sale and purchase of goods, provision of services with an agreement that rights and obligations in the contract cannot be transferred.- Arising from the provision of services in the fields of finance, banking, and insurance according to the regulations of the Prime Minister of the Government of Vietnam on the System of Economic Sectors of Vietnam.- Already factored or used as collateral for other debt obligations.- Overdue for payment according to the sale and purchase of goods, provision of services contracts.- Under dispute.

See details in Circular 02/2017/TT-NHNN, effective from September 30, 2017.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem

- This translation is generated by OpenAI's GPT-4o model;
- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email [email protected]