Paper Suitable for Factoring

Credit instruments suitable for inclusion in a factoring contract include:

	Ordinary invoices and credit invoices.
	Purchase Orders.
	Promissory Notes.
	Deferred Payment Checks.
	Export Documentation.

Exclusions from factoring transactions are based not on the nature of the credit instrument itself, but on the nature of the transaction giving rise to them, or the classification of the account debtor.

Factoring should not be performed using:

	Credit instruments arising out of transactions between related or associated companies.
	Instruments derived from retail sales to individuals if not performed on a regular basis, because of their small amount and large geographical spread.
	Sales on consignment, because of uncertainty regarding the date of collection and the lack of a credit instrument.
	Purchase orders or orders for work, compliance with which is subject to professional work by individuals.
	Sales that imply capital investment by the account debtor.
	Sales of items to be paid for out of the generation of cash flows from the exploitation of the item itself.
	Purchase orders that are dependent on resolutions or other government regulations.