Understanding the General Rules for International Factoring: A Comprehensive Guide | FCI
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Understanding the General Rules for International Factoring: A Comprehensive Guide
Understanding the General Rules for International Factoring: A Comprehensive Guide
14 March 2022

FCI has commissioned a new book called Understanding the General Rules for International Factoring: A Comprehensive Guide, translating the General Rules for International Factoring (GRIF) into an everyday working language. It was written by Mr Yüce Uyanik, a long-time member of the FCI Legal Committee and well-respected industry practitioner with experience in international factoring operations, risk management, and legal affairs. FCI is proud to support this guide and its ability to educate those in the legal areas of International Factoring.

This book offers a unique opportunity to examine the diverse views relating to the GRIF. It analyses each article of the GRIF, looking closely at the implications of transacting international factoring business and how it applies to various aspects of the transaction. In addition, Yüce provides excellent insight by looking at case studies that show how each scenario can be interpreted using the GRIF rules to the transaction. He also provides an in-depth question and answer section and a list of definitions that allow users to understand the rules and their implications on their business more efficiently.

This book goes a long way in helping to understand the legal and technical challenges. It creates an increased awareness of international factoring’s legal aspects, providing insight into the implications of conducting cross-border receivables finance using the two-factor model, attempting to make sense of the myriad challenges facing any financial institution that endeavours to invest in this field.

The growth of the global factoring industry has not always been steady, in part stemming from the lack of adoption of a proper legal system to support the growth of factoring, the development of a robust debtor trade credit environment, the acceptance and support of an open account culture and deployment of adequate government policies for the creation of a competitive and healthy industry. But the creation of the GRIF and its predecessor, the CODE, has transcended borders and has allowed for international factoring to grow and prosper globally, supporting its growth from less than $20 Billion in 1999 (accounting for less than 5% of global volume) to over $600 Billion in 2020 (accounting for nearly 20% of global volume) only twenty years later. The rules of FCI have helped create confidence in the practice of international factoring, whether conducted directly or indirectly using foreign correspondents.

The factoring and receivables finance industry has achieved incredible success. FCI has helped support this growth through the legal foundation, advocacy, education, and thought leadership while providing our members with the necessary tools to ensure success. FCI has been planting the seeds and supporting the legal foundation of cross-border factoring for the past 50+ years, culminating in this phenomenal growth story.

In his forward for the book, Peter Mulroy, FCI Secretary-General: “This publication provides tremendous insight on crucial matters relating to the trade and receivables finance industry. Our partnership with Yüce Uyanik and the release of his book is of strategic importance to FCI. This publication is an excellent tool to support the continued growth of international factoring and allow the reader to learn more about receivables finance. As lead sponsors, we hope this fi ne publication will contribute to a better understanding of our industry”.

Edward Wilde LL.B. LL.M. quoted on the publication: “Whilst the primary purpose of this book is to act as a reference handbook for those working in international factoring, its practical information will be useful to all those involved with the law in this very specialised area. The wide and deep experience of the author means that its relevance and accuracy can be relied upon in all aspects. I commend it to factoring professionals, their legal and other advisers, academics, and students”.

It is a strong reference point to consult the membership at every stage of your two-factor business. This is a must-read for every attorney, legal counsel, and advisor engaged in international factoring, including international managers and their staff.

You can order the book online for EUR 199 by visiting https://fci.nl/form/book-ordering.