A Case for Interfering with Freedom of Contract? An Empirically-Informed Study of Bans on Assignment
25 Pages Posted: 23 Oct 2015
Date Written: October 21, 2015
Do "bans on assignment" of trade receivables cause serious problems with receivables financing? Should Government render them ineffective? Two empirical investigations suggest that though there are good reasons for using BoAs, they cause disproportionate problems to SMEs needing to factor their debts, and there is a good case for intervention.
Keywords: Ban on assignment clauses, receivables financing, SME financing
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