Factoring
"Is factoring highly regulated in Turkey?"
Quick Answer
A financial transaction where a business sells its accounts receivable (invoices) to a third-party financial institution (factor) at a discount to secure immediate cash flow.
Scope and Legal Distinctions
Factoring concerns the transfer and financing or collection of qualifying receivables. Recourse allocation and debtor defences can materially affect the seller's exposure.
What to Check in Practice
Check the factor's authorisation, underlying invoices, delivery evidence, assignment notice, fees and recourse conditions.
Sources & Authorities
Statutory framework and official guidance for this definition.
Need Expert Legal Guidance?
Our experienced attorneys can help you navigate factoring under Turkish law.
Schedule a Consultation