Receivables Finance - Overriding Blocks To Assignment

The Small Business, Enterprise and Employment Bill is expected to produce a huge boost in SME receivables finance. Its key measure provides for regulations to override anti-assignment clauses in SMEs' contracts for the sale or supply of goods or services to businesses. This should make it simpler for SMEs to sell their debts.

The Bill has been progressing rapidly through Parliament and there is every chance it will become law before the general election. However, the resulting Act will not itself override restrictions on assignment. That will only happen when the Government issues regulations under the Act, which seems unlikely before the election. But this is a bipartisan measure, so whoever is in office after the election is likely to introduce the regulations.