Factoring and centralized settlement Law

The specialty field “factoring and centralized settlement law” does not formally exist and is simply a designation which embodies the outcome of Attorney Hartenfels’ professional development. Ultimately, this specialty field consists of all core legal areas and activities that are required in order to engage in the business of factoring or centralized settlement of accounts.

In practice, this uncommon area of professional expertise means, for example:


Structuring and negotiating

  • Factoring agreements
  • Centralized settlement agreements
  • Credit insurance contracts
  • IT contracts (licensing and maintenance contracts)
  • All documents required for implementing the business of factoring and centralized settlement, such as tripartite agreements, negative declarations, guarantees, declarations of subordination, inter-creditor security demarcation contracts, security agreements, etc.

Advising and providing support on

  • Contact and negotiations with the German Federal Financial Supervisory Authority (BaFin)
  • Development, planning and implementation of new business models
  • Assessment of new clients (the “factorability” of the business model)
  • Review of terms and conditions of sale or purchase and framework agreements of creditors and debtors of the factoring clients
  • Disruptions or commitment wind-downs of factoring clients and centralized settlement-network members
  • Threats to clients’ own legal position through, for example, the voidance of transactions in insolvency proceedings or the claims of suppliers holding perfected security interests