Factoring Agreement (Cesión de Facturas) — Colombia

A Factoring Agreement (Contrato de Factoring or Cesión de Facturas) in Colombia is the commercial agreement by which a seller of goods or services (cedente or cliente) transfers ownership of one or more invoices or commercial credits to a specialized financial entity called the factor, in exchange for immediate payment of a discounted percentage of the invoice value. The factor then collects the full invoice amount from the original debtor (deudor cedido) at maturity. Colombian factoring law was significantly modernized by Ley 1231 de 2008 (Ley de Factura), which elevated the commercial invoice (factura comercial) to the status of a título valor (negotiable instrument) that can be endorsed and transferred. Ley 1676 de 2013 (Ley de Garantías Mobiliarias) further strengthened the legal framework by creating a unified registry for movable assets used as security, including receivables, and established the RNEC (Registro Nacional de Garantías Mobiliarias) administered by the Ministerio de Justicia.

Under Ley 1231 de 2008 and its implementing Decreto 1349 de 2016, electronic invoices (facturas electrónicas) issued through the DIAN's MUISCA system and Resolución DIAN 000042 de 2020 may serve as the basis for factoring operations. The factor acquires the invoice's legal ownership and the right to collect directly from the debtor upon the invoice's acceptance (aceptación) by the debtor. Colombian law requires the debtor to acknowledge the factoring through a notificación de cesión delivered by the factor or cedente, after which the debtor must pay the factor and not the original seller. The DIAN's FISE (Facturación de Servicios Electrónicos) platform and private platforms like SIIGO, Alegra, and Helisa support the electronic endorsement of invoices for factoring purposes.

The factoring market in Colombia is served by specialized companies including Bancolombia Factoring, Davivienda Factoring, Lulo Bank's factoring division, and numerous independent factoring companies supervised by the SFC. Factoring services in Colombia are typically offered as: (a) factoring con recurso — the cedente remains liable if the debtor fails to pay; and (b) factoring sin recurso — the factor assumes all credit risk upon purchase of the invoice, providing the cedente with full risk transfer.

The legal framework governing the Factoring Agreement (Cesión de Facturas) — Colombia in Colombia draws on several key statutes and regulatory bodies. Under the Codigo de Comercio (Decreto 410 de 1971), the Camara de Comercio maintains the Registro Mercantil of Colombian companies. The Ley 1258 de 2008 governs Sociedades por Acciones Simplificadas (SAS). The Superintendencia de Sociedades supervises corporate governance. The DIAN (Direccion de Impuestos y Aduanas Nacionales) administers the Impuesto de Renta and IVA under the Estatuto Tributario (Decreto 624 de 1989). Parties executing a Factoring Agreement (Cesión de Facturas) — Colombia in Colombia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Ley 1231 de 2008 (Ley de Factura); Ley 1676 de 2013 (Garantías Mobiliarias) sets the foundational requirements.

A Factoring Agreement becomes essential for Colombian companies facing working capital constraints, long payment cycles with large corporate buyers, or seasonal cash flow gaps. Small and medium enterprises (PYMES) supplying large retailers (Éxito, Falabella Colombia, Jumbo), government entities, or large corporations typically face payment terms of 60–120 days. Factoring converts these receivables into immediate liquidity without incurring traditional bank debt.

Under Ley 2069 de 2020 (Ley de Emprendimiento) and the Programa de Factoring Electrónico managed by the Ministerio de Comercio, Industria y Turismo through Bancoldex, the Colombian government actively promotes factoring as a liquidity tool for PYMES, cooperativas, and empresas de economía solidaria. Companies participating in public procurement (contratación estatal) under Ley 80 de 1993 frequently use factoring to finance contract execution, since state entities typically pay 30–90 days after invoicing and the contrato estatal itself may be used as collateral under the Ley 1676 de 2013 framework.

Exporters with foreign currency receivables from international buyers may use factoring services provided by international factor networks such as Factors Chain International (FCI), through Colombian member companies, to convert export invoices into COP or USD immediately. Under Decreto 119 de 2017 of the Banco de la República, cross-border factoring transactions must be registered in the CAMBIARIO system and comply with foreign exchange regulations administered by the Banco de la República and the SFC.

Parties in Colombia should prepare a Factoring Agreement (Cesión de Facturas) — Colombia proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Codigo de Comercio (Decreto 410 de 1971), the Camara de Comercio maintains the Registro Mercantil of Colombian companies. The Ley 1258 de 2008 governs Sociedades por Acciones Simplificadas (SAS). The Superintendencia de Sociedades supervises corporate governance. The DIAN (Direccion de Impuestos y Aduanas Nacionales) administers the Impuesto de Renta and IVA under the Estatuto Tributario (Decreto 624 de 1989). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Factoring Agreement in Colombia under Ley 1231 de 2008, Ley 1676 de 2013, and Decreto 1349 de 2016 must contain the following essential elements to confirm the factoring is legally enforceable, compliant with DIAN electronic invoicing requirements, and properly registered in the RNEC.

Identification of parties: Full legal name, NIT, and domicile of the cedente (seller), factor (purchaser), and any guarantors (garantes). The factor must be either: an SFC-licensed financial entity; a registered empresa de factoring in the RNEC; or a person authorized under Article 8 of Ley 1231 de 2008 to receive commercial invoice endorsements. Include the factor's SFC authorization number or RNEC registration.

Invoice identification and endorsement: Identification of each invoice being factored by: DIAN CUFE (Código Único de Factura Electrónica) for electronic invoices under Resolución DIAN 000042 de 2020; invoice number, date, amount, and currency; name and NIT of the original debtor (deudor cedido); and the invoice acceptance confirmation (aceptación) by the debtor or the date the acceptance is deemed given under Article 773 of the Código de Comercio.

Purchase price and discount rate: The advance amount (monto del anticipo) paid by the factor — typically 70–90% of the invoice face value; the factoring fee (tasa de descuento or comisión de factoring) expressed as an annual percentage rate (tasa efectiva anual, TEA); the date of the advance payment; and the holdback amount (retención) released to the cedente upon collection from the debtor.

Recourse or non-recourse: Explicit statement of whether the factoring is con recurso (cedente liable for debtor non-payment) or sin recurso (factor assumes all credit risk). For factoring sin recurso, the factor's credit evaluation of the debtor and any credit insurance (seguro de crédito) covering the transaction.

Debtor notification: Procedure and timeline for the notificación de cesión delivered to the debtor, which under Article 887 of the Código de Comercio makes the assignment effective against the debtor. Until the debtor is notified, the debtor may validly pay the original cedente.

Collection procedures: Whether the factor assumes direct collection (gestión de cobro) or the cedente collects on behalf of the factor; applicable late payment interest at the maximum usury rate (interés de usura) set by the Superintendencia Financiera monthly; and procedures for disputed invoices.

Registration in RNEC: For factoring agreements used as part of a movable property guarantee under Ley 1676 de 2013, registration of the assignment in the RNEC (Registro Nacional de Garantías Mobiliarias) of the Ministerio de Justicia is required to perfect the security interest against third parties.

forms-legal.com provides a complete bilingual Spanish–English Contrato de Factoring template covering both con recurso and sin recurso modalities, compliant with Ley 1231 de 2008 and Ley 1676 de 2013, suitable for use by both PYMES and large companies across all Colombian industries.

Additional compliance elements for a Factoring Agreement (Cesión de Facturas) — Colombia used in Colombia include: Under the Codigo de Comercio (Decreto 410 de 1971), the Camara de Comercio maintains the Registro Mercantil of Colombian companies. The Ley 1258 de 2008 governs Sociedades por Acciones Simplificadas (SAS). The Superintendencia de Sociedades supervises corporate governance. The DIAN (Direccion de Impuestos y Aduanas Nacionales) administers the Impuesto de Renta and IVA under the Estatuto Tributario (Decreto 624 de 1989). Forms-legal.com provides this template as a starting point for Colombia-compliant documentation.