Due to the instability of the situation in the global economic market, many institutions are faced with the problem of lack of finance.

Subjects of financial and economic activities may gradually accumulate debt to counterparties, which negatively affects accounting and tax reporting. But debts can also be sold – we’ll talk about how to do this later.

What it is

The concept of accounts receivable is described in both accounting and tax accounting. As a general rule, this is the amount of funds that is payable by one counterparty to another or another.

Its formation, as a rule, takes several months and is associated with non-payment of assigned obligations - for example, for goods supplied or services rendered.

The sale of a debt means its assignment to another person. The transaction is carried out on a reimbursable basis. Documentation must be drawn up in writing in accordance with the requirements of regulatory legal acts.

The agreement must be certified by a notary. The terms of such an agreement should provide for the fundamental principles of cooperation between the parties to the transaction, the range of rights and obligations, liability in the event of certain circumstances, etc.

For example, the assignment agreement requires specifying:

• number of goods;
• due date;
• the period for transferring the right of claim if the transaction is carried out under a purchase and sale agreement.

The following parties participate in the debt assignment transaction:

• assignor, that is, the creditor of the main obligation;
• a debtor organization with an outstanding debt;
• assignee – a person who has acquired the right of claim under the assignment agreement.

After the conclusion of the agreement, all rights to demand payment of receivables, impose penalties and penalties are transferred to the assignee.

How to sell

In the course of the development of civil law relations, a new form of economic entities has emerged - legal entities that acquire rights of claim from other creditor companies.

Such persons buy not only current debts, but also doubtful, overdue and others. During the transaction, one creditor is replaced by another, and the second acquires the full rights and obligations of the first after signing the agreement.

There is no need to agree with the debtor on the replacement of the creditor. An exception to the general rule is the presence of a corresponding provision in the agreement between the original creditor and the debtor.

Important! Any person can purchase receivables - no license is required.

There are several ways to sell accounts receivable:

• assignment agreement;
• factoring;
• bill of exchange;
• contract of sale.

An assignment agreement is a transfer of claim rights to another person. Typically, debts under such agreements are purchased by various collection agencies and commercial organizations.

Factoring is the sale of debt to a bank or other credit institution. The list of legal entities that can buy factoring debt is specified in the Civil Code of the Russian Federation.

Factoring has many similarities with lending - amounts, terms, interest rates, availability of guarantees and status of participants in the process also play a role here.

In essence, factoring is a kind of financing of “receivables”. The bank provides money to the lender, and the latter, in turn, transfers the existing debt.

With the help of a bill of exchange, the transfer of “receivables” is also allowed. A bill of exchange is a security that contains obligations to pay a certain amount of money and interest within a specified period.

There are the following types of bills:

• simple;
• transferable;
• interest.

Sale of receivables at auction

Collection of debts from a defaulter after a court decision is carried out by bailiffs acting on the basis.

Enforcement proceedings provide for 2 options for the sale of receivables:

• Instructing the debtor to transfer funds to the FSSP current account;
• sale of problem debt through public auction.

The latter method is used if the claimant does not want to wait for the debtor to transfer funds to the FSSP account, or if the defaulter refuses to pay at all.

Before putting debts up for auction, they are subject to mandatory assessment by specialized appraisers. The starting price at the auction will be exactly the amount announced by the appraisers.

Important! And although the method of transferring money to an account seems more reliable and expedient, there is some negative nuance.

The debtor may not fulfill the requirement on time, or not fulfill it at all. At the same time, neither the bailiffs nor the collector have any leverage to influence the debtor. That is why public tenders are a much more preferable option.

In bankruptcy proceedings

The bankruptcy procedure is regulated not by 229-FZ, but by “On Bankruptcy”.

As part of bankruptcy proceedings, the claims of as many creditors as possible must be satisfied.

For this purpose, the property and property rights of the defaulter are sold at public auction, and the funds received as a result of the sale are subject to distribution among creditors in proportion to their requirements.

Important! Many people believe that the bankruptcy procedure allows debts to be sold at the highest possible price. However, this is not the case.

If the nominal value of the debt is credited to the FSSP account, then in relation to public trading, the initial value of the debt is, as a rule, 40% of the nominal value.

In bankruptcy proceedings, an assessment of receivables is also necessary. During the process, the bankruptcy trustee is obliged to determine whether the debtor has property and property rights for the purpose of their further implementation.

With discount

The concept of discount refers to the transaction of transferring the debt on a bill.

A bill of exchange is a security that contains obligations to pay cash and interest within specified periods.

In general, the bill of exchange does not need to be supported by additional financial documentation.

During the transaction, one person transfers to another a bill of exchange indicating the amount and payment period.

A discount is a financial transaction in which a bill of exchange is sold. The bank determines the amount of income as the difference between the amount due on the bill of exchange and the amount of interest charges.

The holder of the bill puts his signature on the transfer on it, and then transfers it to the bank. The bank has the right of recourse against the seller.

In the event that the holder of the bill cannot pay the bill, the person who transfers his rights to the security - the endorsee - will be liable. The latter will be responsible for paying the amount of money to the bank.

Features of the purchase and sale agreement

The main feature of the purchase and sale of receivables is precisely the volume of transferred and purchased claims.

If during the assignment the rights are transferred exactly in the same volumes and on the same conditions as existed at the time of transfer of the rights, then under the monetary contract the transfer of “receivables” can be made in any volume, regardless of the conditions and grounds for its formation.

The purchase and sale agreement is usually concluded in simple written form. However, the law does not prohibit imprisonment in another form that is not directly prohibited by legislative requirements.

When developing the form of a purchase and sale agreement, special attention should be paid to the conditions for protecting the buyer in terms of debt collection. In other words, provide for the risks associated with obtaining such debt.

The debtor must be notified in a timely manner about the fact of transfer of rights of claim to another party. If this is not fulfilled, the debtor will acquire the right not to fulfill the obligation to the new creditor (Civil Code of the Russian Federation).

When concluding a contractual agreement, the previous creditor is obliged to transfer to its successor all documentation legally indicating the existence of a right of claim (Civil Code of the Russian Federation).

The debts of counterparties can be sold. To do this, you should use one of the methods - enter into an assignment agreement, purchase and sale agreement, bill of exchange or factoring.

Each method is good in its own way. The choice of what exactly to use should be based on the current situation - how quickly do you need to sell the debt and how profitable do you want to do it?

Video: 7 technologies for receivables collection

The procedure for the sale of property rights, including accounts receivable, is regulated by the following laws:

• “On bankruptcy” dated October 26, 2002 under No. 127-FZ;
• “On enforcement proceedings” dated October 2, 2007 under No. 229-FZ.

The sale of debt amounts can be initiated when bankruptcy proceedings have begun to obtain funds in order to pay them to the creditors of the bankrupt enterprise.

When is it necessary to sell accounts receivable?

The mechanism for collecting receivables can be carried out in one of the following ways:

1. By collecting the debt and then transferring the amounts on it to the account of the Bailiff Service.
2. Exhibiting debt at public auction for sale (Article 76 of Law No. 229-FZ).

In the first case, the debtor may refuse to voluntarily transfer the required amount to the deposit account of the government agency within the specified time frame. The bankruptcy trustee does not have any levers for coercive influence. The second option requires compliance with the rules for selecting receivables for bidding on them:

• the sale of receivables is allowed only in relation to those amounts for which the statute of limitations has not expired;
• the location of the debtor can be accurately determined; he does not reside on the territory of foreign states with which the Russian Federation does not have a concluded agreement on legal assistance;
• the debtor is not included in the category of liquidated entities;
• the bankruptcy process has not been started in relation to the debtor.

Sale of receivables at auction: procedure and rules of conduct of the procedure

When preparing a list of receivables for sale, an analysis of the organization’s formed debt portfolio is carried out:

• How realistic is it to get a refund for a specific debt;
• the degree of liquidity of funds subject to reimbursement is assessed;
• The face value of the debt is fixed.

The sale of receivables at auction involves assigning a price to property rights that is less than the nominal value. Clause 3 of Art. 85 of Law No. 229-FZ of October 2, 2007 on enforcement proceedings stipulates the need to attract an appraiser to determine the market price of the debtor’s assets. The price set by the specialist will be taken as the basis when announcing receivables as a lot at auction. Before making a final decision on the sale of receivables by putting them up for auction, it is necessary to enlist the support of the creditors' committee (or their meeting).

The sale of receivables in bankruptcy proceedings cannot be realized by:

1. Direct transfer of funds by the debtor to the accounts of creditors of the bankrupt organization.
2. Direct sale of debt amounts to buyers, bypassing the bidding procedure.

The bankruptcy trustee can begin searching for direct buyers of receivables only after two unsuccessful attempts to sell them at previous auctions. The selection of candidates for potential buyers is carried out through a public announcement of an offer to buy receivables.

The bidding procedure is implemented in electronic format; anyone can take part, provided they have a completed digital signature, registration on a specialized Internet resource and a paid deposit for a specific lot.

The organizers of the event sign a protocol on the results with the winner of the auction and draw up an agreement on the purchase of debt at the auction. At the next stage, the debtor is notified of the change in creditor. The new creditor begins an independent campaign to collect the debt.

Every commercial enterprise monitors the status of accounts receivable from borrowers, customers, buyers and other similar entities. This is necessary for the timely identification of hopeless, overdue or doubtful obligations. Control is carried out annually through inventory, assessment and analysis of debts. In some cases, these events are held in the middle of the year. In accordance with the data received, the company has information about non-received funds or goods and is considering options for repaying this debt.

Possible solutions to the problem

There are several ways to repay debts. An enterprise can, for example, make claims, involve debt collectors, or file a lawsuit. Another well-known option is the sale of accounts receivable. In practice, sales can be carried out using two methods: factoring and assignment. There are a number of significant differences between these options. An assignment is a transfer of rights to claim repayment of a debt. Factoring is a method that has similar features to lending. In the latter case, the receivables are sold to a bank or other financial institution. The acquirer must have a license to carry out such activities. Factoring is usually used for short-term debt.

Cession

The purchase and sale of receivables in this way requires the fulfillment of a number of mandatory conditions. First of all, all transactions are completed in writing. Such documents prescribe the main provisions of the joint activities of persons. For example, if the debt was incurred under a purchase and sale agreement, then the assignment agreement specifies the volume of products, the terms of payment and transfer. In practice, there are cases when the lender needs money urgently, but the time for payment has not yet come or there is a delay. The seller in such a situation has the right to cede his right to demand payment to another company. The latter, in turn, provides the necessary funds at the right time. Subsequently, such a purchaser himself will claim the debt.

Exceptions

The legislation provides for circumstances in which the sale of receivables is impossible. Such cases, for example, include targeted payments - payments intended for a specific recipient. This category includes alimony, personal grants, compensation for damage, and so on. An assignment agreement cannot be concluded if the identity of the new creditor is important to the counterparty.

Specifics of the transaction

After making the appropriate decision, the enterprise should determine the legal successor. There are many companies that are engaged in the acquisition of various obligations. The written agreement must be certified by a notary. As a rule, an assignment agreement is of a compensatory nature. It must bring relevant economic benefits to the participants, otherwise its conclusion is inappropriate. You can cede not only current obligations, but also overdue and doubtful ones.

Important points

The sale of debt by assignment may be carried out without notifying the obligated person, if the agreement does not provide for such a need. But in practice, it is better to notify the participant to ensure that funds are transferred to the correct address. If the debt is paid to the original creditor, the obligation is considered extinguished regardless of the existence of an assignment agreement. A transaction on the assignment of rights in relation to real estate is subject to state registration.

Factoring

The sale of receivables in this way is carried out in order to obtain additional financing, increase the volume of product sales, and increase capital turnover. When carrying out factoring, purchasers act as agents. Their duties and rights are established in Chapter. 43 Civil Code. Like an assignment, the sale of receivables through factoring means an assignment to third parties. However, there are significant differences between them.

Features of the transition

The sale of debt by factoring can be carried out not only in relation to current obligations, but also planned and not actually concluded transactions. At the same time, overdue debt cannot be sold. With factoring, only monetary rights can be assigned. At the same time, the assignment allows for the transfer of other property obligations. The sale of debt by factoring may not be carried out by all enterprises. For example, this opportunity cannot be used by companies that have a large number of small counterparties with outstanding obligations, or manufacturers of highly specialized products. And the last important feature is that any enterprise can acquire debt during assignment, and only licensed ones during factoring.

Bills of exchange

Accounts receivable can also be realized using them. A bill of exchange is a security containing an unsubstantiated obligation to pay the amount specified in it and interest. One enterprise transfers to another a document indicating the amount and timing of payment. A bill of exchange can be transferable, simple, interest-bearing or discount.

Sale of receivables in bankruptcy proceedings

This option is used in case of insolvency of the enterprise. The decision on implementation is made by the bankruptcy trustee, unless a different procedure is adopted by the committee or meeting of creditors. As a general rule, the event is open. However, closed sales of receivables are also provided. In such cases, auctions are held for a certain number of persons who have the appropriate claim rights. Such situations occur, for example, when ensuring the fulfillment of obligations with property that is limited in circulation.

Sale of accounts receivable: postings

The realizable value of the liability is usually lower than the nominal value. In this regard, a problem arises regarding the procedure for recognizing losses from a transfer made by assignment. This is necessary to deduct income taxes. When selling debt, the base is determined in accordance with Art. 279 NK. In clause 2 of this norm there is an indication of the use of the accrual method when calculating income. Thus, you need to subtract the cost of services and products sold from the profit from the sale of debt. The resulting value is a loss. It is included in the non-operating expense of the payer. Part of the amount of the loss is attributed to him at the time of sale, and part - after 45 days from the date of transfer of rights.

Special cases

When assigning a right before the payment specified in the agreement is made, the losses that may arise from the sale of the debt should not exceed the amount that was transferred and must correspond to the profit from the transfer of the corresponding right. The procedure for crediting interest is established in Art. 269 ​​NK. The amount of interest included in the costs when calculating income for taxation cannot deviate from the average by more than 20%.

In the vast majority of cases, this is not a shortcoming in the operation of the enterprise. This type of debt represents those funds that must be returned to the organization by counterparties. The only case when such debt does not bode well for the organization is when the debtors do not meet their obligations for a long time.

That is why many companies are not eager to work with deferred payments so that accounts receivable cannot be formed. However, if it could not be avoided, then it is worth looking for various possibilities to solve the problem.

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

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The sale of receivables is considered to be such a solution. To carry out this operation, you need to know about the cost of sale, the methods, as well as the accounting procedure.

Sales price

This type of debt is sold not at face value, but at much less. That is why for many organizations this operation cannot be called profitable. This is due to the fact that during the sale process the company may lose a significant amount of funds.

However, quite often, this step is the only opportunity to return at least part of the funds that were transferred to third parties. To determine the company's income from the sale of receivables, it is necessary to subtract from the funds received the cost of services or goods that were sold to debtors with subsequent deferment of payments.

With this calculation procedure, you can get a loss that can be added to a certain group of expenses, as a result of which the tax base can be reduced. Within this framework, it is important to remember that non-operating expenses should include only 50% from this loss at the time of sale of the debt.

The second part of the loss can be taken into account only after at least 45 days have passed from the date of sale of the debt. Many entrepreneurs are interested in the question of what to do with interest accrued on the amount of funds that counterparties must return. Within this framework, it is important to rely on the provisions of current legislation.

The law states that interest that was attributed to expenses as part of determining the organization’s income cannot amount to more than 20% . It is worth noting that for transactions that are carried out in foreign currency, it is necessary to apply an average percentage, which is approximately 22% .

Only legal entities can carry out the procedure for buying or selling receivables. To do this, a special agreement must be drawn up, which must be executed correctly.

Most often it occurs in banks and other financial institutions that are forced to insure themselves in case of non-repayment of issued funds at increased interest rates.

A sample debt restructuring agreement can be found at.

Partner in this matter are special organizations that purchase debt on favorable terms and independently collect obligations from debtors.

Methods for selling receivables

Cession

All, without exception, transactions within the framework of this method are formalized using an agreement in writing. This document describes all the current nuances of joint activities. If the assignment is a purchase and sale agreement, then it must indicate the terms, as well as quantitative indicators of the transferred products or services.

In this framework, the contract is the most important document, which acts as confirmation of the fact that the buyer must pay a certain amount of money or provide goods and services to the seller. The assignment procedure is regulated by current legislation, or more precisely by Chapter No. 24 of the Civil Code of the Russian Federation.

It is worth noting that as part of the assignment, not all obligations can be transferred to third-party creditors. For example, address cards that are intended for a specific person cannot be transferred. This could be alimony, grants, or compensation for certain physical or property damage. An assignment agreement also cannot be concluded in cases where the identity of the new creditor is of fairly close importance to the payer.

After making the appropriate decision to sell debt obligations as part of the transfer of claims, it is necessary to urgently find a successor. After selecting a special company, an agreement is signed with subsequent certification by a notary service.

The debtor may not be notified of the fact of the transfer of the rights of claim, unless the contrary is provided for in the original agreement. When assigning rights to real estate, it is necessary to go through the state registration procedure.

In the vast majority of cases, the assignment agreement is compensated. It is intended to provide economic benefits to the parties to the transaction. Otherwise, concluding such an agreement may be considered inappropriate.

It is worth noting that not only current and overdue debts, but also those debts that belong to the doubtful group may be subject to assignment of debt obligations

Bill of exchange

The sale of receivables can be carried out using bills of exchange, which are securities containing obligations to pay the amount of funds specified in the document and the accumulated interest on it. It is worth noting that these obligations are not substantiated in any way.

One organization issues another promissory note, which indicates that it must pay a specified amount of money after a certain time.

A bill of exchange can be of four types:

• interest;
• discount;
• simple;
• transferable.

Promissory notes contain specific obligations of a company or individual to pay others a certain amount of funds after the expiration of a time specified in the document. Such a bill can be considered conclusive confirmation of the existence of debt obligations. Debtors receive bills only after the expiration of a certain period.

The creditor can thus use such obligations to settle accounts with its counterparties. This is why the transfer of a note can be considered a sale of receivables and accrued interest.

Factoring

Factoring is the sale of receivables in favor of a credit or any other special organization. The main purpose of such an operation is to implement an additional procedure for financing the company and increase the turnover rate of the corresponding capital.

Within factoring, debt purchasers can be considered financial agents. It is worth noting that the rights and obligations of such agents are prescribed in Article 43 of the current Civil Code of the Russian Federation.

The factoring procedure, like an assignment operation, means the transfer of debt obligations to third parties. However, there are certain differences.

The first difference is that the relevant agents can buy not only obligations for current transactions, but also for future ones that are only in the development stage. It is worth noting that within this framework it is impossible to sell overdue debt.

The second difference is that during the assignment not only financial, but also other property rights can be transferred. As for factoring, it transfers exclusively financial obligations. Another difference is this.

That not all companies can use the services of financial agents. Such organizations may include companies with a fairly large number of minor debtors.

The last difference is that the sale of receivables within the framework of an assignment can be carried out by any organization. In the case of factoring, such operations can only be carried out by special licensed or credit companies.

Accounting

The cost of realizing obligations, in most cases, is below par. Within this framework, a certain problem arises, which directly concerns the procedure for recognizing losses from the transfer of debt obligations, which was carried out as part of the assignment procedure. This is required for income tax deduction.

When selling debt obligations, the base is determined in accordance with Article 279 of the Civil Code of the Russian Federation. In paragraph 2 of this act there is an indication of the use of accrual methods when calculating the level of income. Thus, the cost of goods and services sold must be deducted from the profit from the sale of debt obligations. The amount received is a loss.

This loss is included in non-operating expenses. Part of the amount of loss relates to such expenses at the time of sale, and part - after the expiration of the period of time established by law. Most often this period is 45 days.

Example

Altair LLC entered into a deal for the sale of services with VIP LLC. The amount of the agreement was 60,000 rubles, of which 10 000 amounted to VAT. The provisions of the contract imply that payment for the services provided must be made within 90 days from the date of actual sale.

The economic crisis has led to many enterprises losing their solvency. At the same time, they accumulated a large amount of receivables.

Some business entities decide to sell it to third parties in order to get out of a difficult situation. As practice shows, it is often sold at a price that is significantly lower than the nominal value.

What it is

The wording “accounts receivable” means a monetary amount of debt that is subject to mandatory payment by one legal entity or individual to another.

As a rule, it is formed over the course of several months as a result of a violation by the debtor or creditor of the deadline for fulfilling obligations that are provided for by law or contract.

The definition of the concept of “delay” is established by the provisions of civil law, which regulate the relations of economic entities. According to generally accepted rules, the debtor is liable to the creditor for losses incurred by him as a result of the delay and the impossibility of fulfilling his obligations.

Responsibility for delay lies with:

• requirements of regulatory legal acts;
• the terms of the current contract, which were established by the interested parties when signing it.

Losses incurred as a result of delay are not subject to compensation if a penalty, that is, a penalty, is imposed for it. As a rule, the presence or absence of arrears, its terms and limitation are key factors in credit history. Its assessment is carried out on the basis of current arrears, represented by overdue payments over a period of one year.

The norm was introduced by global banking practice. It should be noted that in some states, current late payments include late payments from the current and past financial year. For example, in Great Britain, Switzerland, France.

Basic Rules

The assignment of receivables is carried out on a reimbursable basis. Its documentation must be properly prepared in writing in accordance with the regulations of legal acts. must be notarized. It contains basic provisions providing for mutual cooperation of the parties to the transaction, their rights and obligations, and responsibilities.

For example, it must indicate the volume of products, the deadline for making payment and transferring the right of claim if the transaction is carried out on the basis of a purchase and sale agreement.

The purchase and sale transaction is formalized by an agreement on the assignment of the right of claim, that is, an assignment.

It involves:

• a assignor who is a creditor;
• an enterprise is a debtor with receivables;
• assignee - a person who purchased the lot with the right to claim.

The assignee has the right to demand payment of receivables, impose penalties and fines. The conditions are provided for in the initial agreement, which serves as the basis for the issuance of loan funds. The title confirms the buyer's legal rights to claim payment of the receivables. A number of documents are attached to the assignment agreement.

These include:

• loan agreement;
• loan repayment schedule indicating the deadline for making monthly payments;
• mortgage, if any property was provided as collateral;
• an official document confirming the guarantee, if it was appointed at the request of the bank;
• payment receipts for the amount of money paid.

The legislator has established the impossibility of applying it to targeted payments, which include payments intended for a specific person. For example, alimony payments, compensation for damage to life and health, grants.

Specifics of the sale of receivables

Today, various companies have emerged that acquire obligations on receivables. They are interested in obtaining a certain benefit for themselves, so they check the feasibility of the upcoming transaction. During its implementation, current, overdue, and doubtful obligations are acquired.

Deal Feature

The legislator has provided in the provisions of civil law a rule on the sale of receivables. Its implementation is carried out during a transaction of assignment of the right of claim, which is usually called an assignment. It involves replacing one creditor with another, resulting in a transfer of rights and obligations.

The procedure, in accordance with civil law standards, is carried out without the consent of the debtor. During the assignment, the transfer of not only monetary obligations, but also property ones is provided. At the same time, any person can buy receivables, regardless of whether they have a license.

Important Details

If an enterprise has decided to sell receivables, then it must decide on the person who will act as the legal successor. The debtor is notified of the assignment transaction if the original agreement provides for his notification. But it is better to notify him so that the funds are transferred to the right person.

If the debt is paid to the creditor in full, then the obligations are regarded as canceled regardless of the conclusion of the assignment agreement.

It is subject to mandatory registration to give it legal force.

What are the risks of declaring bankruptcy?

During the process, the company's property is sold in order to pay off its debts using the proceeds. In some cases, receivables are put up for auction along with property. The property is sold by an external manager appointed by the arbitration court in the manner prescribed by the legislator.

Accounts receivable are put up for sale in the form of a specific lot indicating the name of the enterprise and the amount of debt.

The external manager acts with the consent of creditors when organizing tenders, which consider the issue of bankruptcy at the first meeting. It makes a certain decision to approve the actions of the external manager regarding the sale of the property of the bankrupt enterprise.

If the lot is sold, then the full amount of money for it is credited to the debtor's bank account within one month. The period is counted from the day the auction closes. If primary documents are missing, then the receivables put up for auction in connection with the bankruptcy of the enterprise are established on the basis of reconciliation of mutual settlements with the creditor.

Target

As a rule, the sale of receivables under an assignment transaction scheme is carried out for a specific purpose. As a result of its sale, the seller will receive additional financing to restore production, contributing to the return of its solvency.

If economic activity is properly organized, then the volume of product sales increases and capital turnover increases.

As for the buyer, he will receive a commission for the funds that were provided to the debtor.

Factoring sales

One of the popular ways to sell receivables is factoring. Questions regarding its application, conditions and grounds, rights and obligations of participants acting as agents are provided for in the instructions of Article 43 of the Civil Code of the Russian Federation. It notes that the transaction involves the assignment of the right of claim to third parties.

The concept refers to a transaction during which receivables are directly sold to a bank or credit institution. This kind of operation is carried out by a factor that withdraws from the enterprise a commission from the main monetary amount of the payment in a certain amount, calculated as a percentage.

The method allows you to sell current and planned cash obligations during the assignment of the right to claim on them.

In addition, it may well be applied to transactions that are not actually concluded. But you cannot sell overdue debt using this method.

Factoring is carried out:

• with recourse, the seller of receivables is liable to the buyer if the debt is not repaid;
• Without recourse, the bank or creditor institution purchases receivables, which may result in risks of loss if the accounts turn out to be questionable.

Not all enterprises can afford factoring, because a license is a prerequisite. If they have an uncountable number of small counterparties who owe money to them, then they are also deprived of the possibility of applying the method. The same applies to companies with a narrow specialization that manufacture exclusive products.

Selling bills at a discount

The legislator allows transactions with receivables using a bill of exchange. It means a security that contains obligations to pay a sum of money and interest accrued to it at a specific time.

Types of bills:

• translated;
• simple;
• percentage.

As a rule, it is not justified by any additional official documents. During a financial transaction, one person transfers to another a bill of exchange indicating the amount and timing of payment. Any bank or credit institution, when performing financial transactions, records it along with the percentage set for it, which is called a discount.

The expression “discounting” refers to a financial transaction during which a bill of exchange is sold for receivability. To determine the amount of income, the bank deducts interest charges from the amount of money intended to repay the bill. The holder of the bill puts an inscription on it indicating its transfer, and then gives it to the bank, which has the right of recourse against the seller.

If the holder of the bill cannot pay it, then the person transferring his rights to the security - the endorsee - bears responsibility. He must pay the amount of money to the bank personally, since he is responsible not only for the existence of the right, but also for its implementation. In addition, he has a contingent liability for the cash amount of the discounted bill disclosed in the financial statements.

And in conclusion, it should be noted that a contingent obligation is understood as a potential obligation that can become an actual obligation. This situation occurs if the receivable is not repaid by its buyer.