Jan Juliussen of Elcon Finans presents the latest analysis of the Norwegian market
In recent years factoring has become more accepted by bankers and accountants as an alternative to the overdraft facility and total factoring turnover in Norway recorded steady development during the 1990s. The banks are the major providers of overdraft funds, which amount to approximately EUR 6.5bn (85% of the market), compared with the factoring companies’ provision of EUR 254m. Potential factoring lending volume is approximately EUR 1.9bn. Factoring activity is regulated by the Mortgage Act of 1980. A factoring contract is entered into The Register of Movable Property, the debtor being notified in writing as well as having the assignment clause detailed on the invoice. The interest rate for late payments is regulated by law and, unless otherwise agreed between the parties, the rate is currently 12% p.a.
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In recent years factoring has become more accepted by bankers and accountants as an alternative to the overdraft facility and total factoring turnover in Norway recorded steady development during the 1990s. The banks are the major providers of overdraft funds, which amount to approximately EUR 6.5bn (85% of the market), compared with the factoring companies’ provision of EUR 254m. Potential factoring lending volume is approximately EUR 1.9bn. Factoring activity is regulated by the Mortgage Act of 1980. A factoring contract is entered into The Register of Movable Property, the debtor being notified in writing as well as having the assignment clause detailed on the invoice. The interest rate for late payments is regulated by law and, unless otherwise agreed between the parties, the rate is currently 12% p.a.