What happened
• Law No 4466‑IX “On Factoring” was published on 30 July 2025 and has now entered into force.
• Most provisions will start to apply one year after publication—but only once the related amendments to the Civil Code take effect.
• Three technical clauses (sub‑para 1, para 3; paras 8‑9, Section V) operate from the day after publication.
Key points in the new regime
| Area | Core rule |
|---|---|
| Scope | Governs all factoring deals between a factor, client and debtor—except the five carve‑outs listed below. |
| Carve‑outs | Law does not apply to: (1) assignments arising from other financial‑service contracts; (2) transfers with no remuneration to the new creditor; (3) assignments by non‑qualified parties; (4) receivables already overdue when the deal is signed; (5) transfers handled under Ukraine’s bank‑deposit guarantee law. |
| Subject‑matter | Only the right to a monetary claim can be factored. Penalty claims and already‑overdue debts are barred. |
| Mechanics | • Factor pays (or promises to pay) the price of the receivable, plus its fee. • Client assigns (or promises to assign) the monetary claim. • Future receivables pass to the factor the moment they come into legal existence; no extra paperwork is needed if the contract already spells out the trigger event or condition. |
| Grandfathering | Deals signed after the law takes effect follow the new rules. Existing factoring agreements stay under the old legislation. |
Why it matters
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Clarifies what can—and cannot—be sold in Ukraine’s receivables market.
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Locks in legal certainty for fintechs and banks planning to launch modern factoring platforms.
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Gives market participants 12 months to align contracts, IT systems and compliance procedures with the new Civil Code amendments.
Businesses eyeing receivables finance should review current agreements now and draft new templates that meet Law 4466‑IX before the grace period expires.
