Book Debt Financing

Abstract:     
Despite its importance in facilitating the transfer of goods and services worth millions of dollars and the fact that, in itself, it has grown into a multi-million dollar industry, the legal regime supporting the raising of finance through the sale of and mortgage or charge of book debts is still not totally clear. This is so because businessmen have run ahead of lawyers. They have creatively adapted a somewhat ancient legal device to suit modern requirements. Some areas of law are still not definitively settled, as this article will show.

Keywords: Credit and security, book debt financing, sale of and mortgage or charge of book debts

JEL Classification: K12, K20

Accepted Paper Series