legal nature of factoring financing agreement (with comparative study of american, england, french and iranian law)

in the context of international trade factoring as one of the important ways of financing, is a dominant method of asset based financing for small and medium enterprises. financing through factoring be done in the form of a contract between the creditor and factor, and determining the legal nature of this contract is important to identify and determine its effects. with this regard, this paper studied comparatively the legal nature of factoring financing in the national laws of developed countries and iran’s legal system. most countries except france use contractual form of assignment of debt for legal justification of factoring financing. as the basis of factoring financing based on transfer of debt, in the domestic level iran similar to others countries like itself that has no specific rules about can also use contractual frame works in which the transfer of debt is possible.