Assignment of receivables

The transfer of invoice ownership from the seller to the factor.

Why it matters

A valid assignment is required for the factor security interest to attach. Defects such as anti-assignment clauses in customer contracts can limit the factor rights.

Related terms

Related article: UCC filing in factoring

Related reading

Sources

  • Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.