Factoring

Legal objectives of factoring agreements

 

The legal objectives are :

a. enforceable against the client

b. enforceable against the debtor

c. have priority over competing interest of third parties

d. avoid payment of stamp duty ( no longer required in Singapore and some countries)

e. avoid registration

As assignment by way of security requires registration with ACRA, factor avoids this method so that they do not have to register with ACRA.