What is Assignment of Receivables?
What is Assignment of Receivables Based On?
Assignment of receivables, which falls under the scope of contract law, is the process by which creditors transfer their receivables. According to Article 183 of the Turkish Commercial Code, creditors can transfer their rights to a third party without the debtor's consent. Receivables that comply with the law can be transferred through assignment to factoring companies. Factoring companies contact the debtor after taking over the creditor's rights. It is possible to directly contact the debtor without prior notice or warning. Brands such as https://www.acarfactoring.com.tr/ are among these companies. Factoring companies, which also purchase checks that have not yet reached their due date, thus meet the buyer's urgent cash needs.
Does the Receivable Change with Assignment of Receivables?
The transfer of receivables can be determined by the creditor's will, court decision, or legal provision. The person transferring the receivable is called the assignor. The party that takes over the receivables is called the assignee. A contract must be made between the two parties for the transfer of receivables. With the advancement of technology, there are now companies that carry out end-to-end transfer processes and provide online services to their customers. In the process of assignment of receivables, where the right holder changes, the receivables themselves do not change. There are two parties to the assignment of receivables. The creditor can transfer their receivable to a third party without the debtor's consent. You can receive these services separately or all together from factoring companies, which offer financing, guarantee, and service (collection) services. Factoring companies, which enable the assignment of future receivables, also cover receivables that may arise in the future. Thanks to the Turkish Commercial Code, which allows the assignment of receivables that may arise after the assignment, you can easily carry out assignment of receivables transactions after determining the amount and legal basis of your receivables.
