Receivables financier meaning

A receivables financier is a bank or specialist lender that provides working capital by purchasing a business’s receivables (for example, trade invoices) or by lending against them. Common structures include factoring (with or without recourse), invoice finance, receivables purchase agreements, supply chain finance and asset-based lending. This is a descriptive term rather than one defined by statute or case law, but the underlying legal techniques are established. Funding is implemented either by an outright transfer of receivables (assignment, assignation or novation) or by taking security over them. Key issues include the effectiveness of the transfer or security, notification to debtors, perfection and priority (including, for security, registration at Companies House or the Companies Registration Office), restrictions on assignment, set-off and dilution risk, warranties, covenants and control of collections. Across England & Wales and Northern Ireland, legal assignment is governed by section 136 Law of Property Act 1925; clauses prohibiting assignment of receivables are curtailed by the Business Contract Terms (Assignment of Receivables) Regulations 2018. In Scotland, assignation of claims is governed by the Moveable Transactions (Scotland) Act 2023. In Ireland, assignment follows common law and statute, with contractual anti-assignment provisions effective. Usage is broadly consistent across the UK and Ireland.