Zelenskyy signs law on factoring
President of Ukraine Volodymyr Zelenskyy signed the law on factoring, which improves the regulation of this type of financial activity in Ukraine and updates the provisions of other laws related to the provision of factoring services.
According to the card for bill No. 12306 on the official website of the Ukrainian parliament, the bill was submitted to the Verkhovna Rada on December 11, 2024; adopted at the first reading on February 12, 2025, with the finalization of the provisions; adopted at the final reading on June 3; signed by the Speaker of Parliament on June 6; sent to Zelenskyy for signature; and returned with the signature of the President of Ukraine on July 27.
The document's provisions aim to implement the Model Law of the International Institute for the Unification of Private Law on Factoring into Ukrainian legislation. They also aim to introduce state registration of assignment of rights to claims, determine priority in the assignment of rights to monetary claims, and establish the subject and content of factoring agreements.
According to head of the relevant parliamentary committee Danylo Hetmantsev, the document also distinguishes between the regulation of trade factoring and operations with financial debt.
At the same time, companies that provide services for the assignment of rights under consumer credit agreements will carry out their activities within the framework of a financial company license. This license allows for the provision of credit and is incompatible with trade factoring services.
According to Hetmantsev, the adoption of the law will bring Ukrainian factoring closer to best international practices and will make it possible to reduce the risk of fraud during factoring activities.
