The Economic Nature of Factoring and its Legal Manifestation in the Bulgarian Legislation and the Convention on International Factoring

• Author: Emilia P. Dimitrova
• Position: Assistant Professor, PhD, Department of Law, New Bulgarian University, 21 Montevideo Street, Sofia, Bulgaria
• Pages: 52-64

ACTA UNIVERSITAT

52

Abstract: The f

actoring is a

facilitate the use of trade c

financing, credit protection, a

factoring as a legal phenome

services between the supplie

between the suppl

ier and the

Keywords:

financing funct

factoring

1. Introduction

The economic develop

Market, and the gl

obal

economic collaboration

laws has expanded to i

These phenomena are w

because they offer rati

goods, services and

instruments are leasing

known in Bulgaria. How

legal phenomena for

medium-

sized entrepren

nature of factoring and i

1

Assistant Professor, PhD,

Sofia, Bulgaria,

postal code:

author: edimitrova@nbu.bg

.

ATIS DANUBIUS

Vol. VII,

Emilia P. DIMITROVA

1

is a sophisticated financial technique and management servic

e credit. This article illustrates the basic factoring services

n, accounting (ledgering) and collection of

receivables. It is em

menon includes two contracts: a contract for sale of goods or

lier and its customers (debtors), on the one hand, and a fact

he factor, on the other hand.

nction; credit risk; provision of administrative and accoun

opment of Bulgaria, its accession to the European

bal economy has resulted in the adoption of new

on which require legal interpretation. The Bulgarian

o include legal phenomena that it has been unfam

e well

-established

and applied in international trad

rational solutions to issues related to the free mo

d capital. The most common among the mo

ng, franchising and factoring. Of these,

factoring

owever, it has the same practical significance as th

r economic activities, especially these of the

reneurs. The objective of this paper is to outline the

d its legal manifestation.

Department of Law, New Bulgarian University,

21 M onte

de:

1618. Tel.: +359 (2) 811 0222, fax: +359 (2 ) 811 0260.

Co

.

The Economic Nature of Fa

and its Legal

Manifestation in

Bulgarian Legislation and the Con

on International Factoring

AUDJ, vol. VII, no.

II, no

. 1/2011

vice designed to

ces and namely:

emphasized, that

or for supply of

actoring contract

unting services,

ean Common

ew forms of

rian system of

familiar with.

rade relations

movement of

modern legal

g is the least

the other two

e small and

the

economic

ntevideo S treet,

Corresponding

Factoring

in the

onvention

ing

o. 1, pp.

52-64