At each commercial enterprise, the state of the receivables of borrowers, customers, buyers and other similar entities is monitored. This is necessary for the timely identification of hopeless, past due or doubtful obligations. Control is carried out annually through an inventory, evaluation and analysis of debts. In some cases, these activities are carried out in the middle of the year. In accordance with the data received, the company has information about unreached funds or goods, is considering options for repaying this debt. 
Possible solutions to the problem
There are several ways to repay debts. An enterprise may, for example, make claims, attract collectors, and file a lawsuit. Another well-known option is the sale of receivables. In practice, implementation can be carried out by two methods: factoring and cession. There are a number of significant differences between these options. Assignment is an assignment of rights to demand repayment of a debt. Factoring is a method that has similarities with lending. In the latter case, the sale of receivables to a bank or other financial structure is carried out. The acquirer must have a license to carry out such activities. Factoring is usually used for short-term debt.
Cession
Purchase and sale of receivables in this way involves the fulfillment of a number of mandatory conditions. First of all, all transactions are executed in writing. Such documents spell out the main provisions of the joint activities of individuals. For example, if a debt was formed under a sales contract, the volume of production, the term for payment and transfer are indicated in the agreement on the transfer. In practice, there are cases when a creditor needs money urgently, but the time for payment has not yet come up or a delay has occurred. The seller in this situation has the right to assign his right to demand payment to another company. The latter, in turn, provides the necessary funds at the right time. Subsequently, such an acquirer himself will claim the debt. 
Exceptions
The legislation provides for circumstances in which the sale of receivables is not possible. Such cases, for example, include targeted payments - payments intended for a particular recipient. This category includes alimony, grants, damages and so on. An assignment agreement cannot be entered into if the identity of the new creditor is important to the counterparty.
Transaction specifics
After making the appropriate decision, the company should determine the assignee. There are many companies that are engaged in the acquisition of various obligations. A written agreement must be certified by a notary public. As a rule, the assignment agreement has a paid character. It should bring the participants appropriate economic benefits, otherwise its conclusion is inappropriate. You can concede not only current obligations, but also overdue and doubtful ones. 
Important points
Sale of debt by cession may be carried out without notice to the obligated person, if the contract does not provide for such a need. But in practice, it is better to notify the participant to ensure the transfer of funds to the desired address.In the case of payment of the debt to the original creditor, the obligation is deemed repaid regardless of the existence of an assignment agreement. The transfer of rights in respect of real estate is subject to state registration.
Factoring
The sale of receivables in this way is carried out with the aim of obtaining additional financing, increasing the volume of sales, increasing capital turnover. In factoring, acquirers act as agents. Their duties and rights are established in Sec. 43 Civil Code. Like cession, the sale of accounts receivable by factoring means the transfer to third parties. However, there are significant differences between them. 
Transition Features
Factoring debt sales can be carried out not only in relation to current liabilities, but also planned and actually not concluded transactions. At the same time, past due debt is not subject to sale. When factoring, you can transfer only monetary rights. In this case, cession allows the transfer of other property obligations. Factoring debts may not be sold by all enterprises. For example, companies that have a large number of small counterparties with unliquidated obligations, manufacturers of highly specialized products cannot take this opportunity. And the last important feature is that any enterprise can acquire debt under assignment, and only licensed under factoring.
Bills
Accounts receivable can be realized with their use. A bill of exchange is a security that contains an unjustified obligation to pay the amount specified therein and interest. One company transfers to another document, which indicates the amount and term of payment. The bill can be transferable, simple, interest and discount. 
Sale of receivables in bankruptcy proceedings
This option is used when the insolvency of the enterprise. The decision on the implementation shall be taken by the bankruptcy trustee, unless another procedure is adopted by the committee or the meeting of creditors. In accordance with the general rule, the event is open. However, a closed sale of receivables is also provided. Bidding is conducted in such cases for a certain number of persons having the relevant claim rights. Such situations occur, for example, in ensuring the fulfillment of obligations by property limited in circulation.
Sales of receivables: postings
The selling value of a liability is generally lower than par. In this regard, a problem arises regarding the procedure for recognizing transmission losses committed by cession. This is necessary for the deduction of income tax. When selling debt, the base is determined in accordance with Art. 279 Tax Code. In paragraph 2 of this norm there is an indication of the use of the accrual method in calculating income. Thus, you need to subtract the cost of services and products sold from the profit from the sale of debt. The resulting value is a loss. It is included in the non-operating expenses of the payer. Part of the amount of loss relates to it at the time of sale, and part - after 45 days from the date of transfer of rights. 
Special cases
In case of assignment of the right until the payment specified in the agreement is made, the losses that may arise during the sale of the debt should not exceed the amount that was transferred and must correspond to the profit from the transfer of the corresponding right. The procedure for crediting interest is established in Art. 269 Tax Code. The amount of interest included in the calculation of income for taxation cannot deviate from the average by more than 20%.
