By Charlotte GAUCHON
15 June 2025
The mobilisation of receivables is an essential short-term financing technique for companies' cash flow. By transferring their invoices to a financial institution, they obtain immediate liquidity. However, when this operation involves foreign partners, a tangle of legal rules arises. Determining which national law applies then becomes a complex exercise, a source of uncertainty and risk. Receivables financing is a perfect illustration of the challenges of conflict of laws in international banking law, where a misunderstood clause can undermine the entire package. Receivables financing: techniques and issues in private international law To finance their operating cycle, companies mainly use two mechanisms to finance their trade receivables: factoring and the assignment of trade receivables, known as "cession Dailly". Although they pursue a similar objective, these two techniques have distinct legal bases that complicate their application...
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