Legal Framework

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Factoring in numbers

Factoring is financial activity that has been performed in Portugal since the 1960s.

In 1986, through Decree-Law 56/86 of 18 March, it came to be regulated as a para-banking activity, and notices no. 2/86 and 5/86 of the Ministry of Finance came to supplement its legal framework.

Notices nos. 9/90, 10/90, 12/90, 13/90, 14/90 and 15/90 complete the regulatory framework for factoring.

  • no. 12/92 - Definition of Own funds,
  • no. 10/94 - Limits to risk concentration,
  • no. 7/96 - Own funds requirements,
  • no. 3/95 - System of provisions for receivables overdue and for general credit risks.

Draft Framework-Law for the financial sector classifies Factoring companies as Specialised Lending Institutions, exclusively reserving this activity to this type of company.

Publication of Decree-Law no. 171/95 of 18 July
Revokes Decree-Law no. 56/86
Simplifies and liberalises the operations and contractual obligations of Factoring companies.

Last amended by Decree-Law no. 100/2015 of 2 June (PDF).