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1988 Ottawa Convention on International Factoring: in-depth analysis
By Raphaël MORENON16 July 2025Factoring is a valuable financial management tool for companies wishing to optimise their cash flow by transferring their trade receivables to a specialised institution, the factor. When a company's customers are located abroad, the operation becomes more complex and takes on an international dimension. International factoring and its general legal framework are then faced with a patchwork of national legislation, a source of legal uncertainty. To harmonise practices and facilitate trade, the Ottawa Convention on International Factoring was signed on 28 May 1988. This international agreement proposes a set of uniform rules designed to remove the legal obstacles specific to these transactions. Understanding its scope and mechanisms is essential for any economic player operating internationally. Our firm, with its expertise in banking and finance law, can help you decipher this fundamental text. Background and scope of the 1988 Ottawa Convention The Ottawa Convention...
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