Legal Environment for Financial Factoring in Albania and its Comparison with Other Countries of the World

Shpresa Çela


The judicial and legal environment of each country play a critical role in determining the various financing products of the country. It influences the importance and magnitude of the factoring industry. A key issue for factoring can be considered whether a financial system of commercial law sees it more as a sale and purchase transaction or as a loan. In this paper, we will see how factoring is treated by the legal system in Albania. Also, credit bureaus basically address a key obstacle to credit: the asymmetry of information. If the sharing of information between lenders and borrowers is too wide, then it may result to the rationalization of credit. Participation by lenders in public credit bureau known as credit registry, often in different countries, is amended by law over a certain limit. This study considers the various limitations of a public credit registry in relation to a credit bureau. In addition, it shows the comparison of the legal environment between countries in which financial factoring is regarded as a literal industry. JEL Classification: G24.

Keywords: Transaction, sale, purchase, information asymmetry, credit bureau, credit registry.

Full Text:




Copyright © 2012-2020 ANGLISTICUM. Journal of the Association-Institute for English Language and American Studies,Tetovo, Republic of North Macedonia.

All Rights Reserved.

The publication is licensed under a Creative Commons License (CC BY)  View Legal Code                                                                                                                 

ISSN (print): 1857-8179. ISSN (online): 1857-8187.

Disclaimer: Articles on Anglisticum have been reviewed and authenticated by the Authors before sending for the publication.

The Journal, Editors and the editorial board are not entitled or liable to either justify or responsible for inaccurate and misleading data if any. It is the sole responsibility of the Author concerned.