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Invoice finance—nullifying the ban on invoice assignment contract clauses

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Published on: 03 September 2015

Published by a LexisNexis Commercial expert

Table of contents

Original news
What is the background to this consultation?
What is the significance of these proposals?
What contracts does it apply to? Are there any exemptions?
How will contract drafting need to change to accommodate the proposed changes?

Article summary

Commercial analysis: Following a recent consultation, the government is to ban invoice assignment clauses in business-to-business contracts, whereby large businesses can exclude mainly small and medium-sized enterprise (SME) suppliers who use the alternative finance tool to manage their cashflow. Jeff Longhurst, chief executive officer of the Asset Based Finance Association (ABFA), examines the background to the consultation and the future legislative reforms.

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