Agreement of financing against the assignment of a monetary claim (factoring)

Contract of financing cession of the monetary claim (factoring) is a civil-law contract under which one party (the financial agent) transfers or agrees to transfer to the other party (the client), money on account of the monetary claim of a client (the creditor) to a third party (the debtor), arising from the provision of the client of goods, works or services to a third party, and the client cedes or agrees to cede the financial agent this monetary claim. The monetary claim to the debtor may be ceded by the client to the financial agent also in order to ensure the performance of the client's obligation to the financial agent. Factoring is a new legal construction in the Russian civil law, so currently the practice of application of factoring relations in Russia is at the stage of formation.