Article 1 1. This Convention governs factoring contracts and assignments of receivables as described

in this Chapter. 2. For the purposes of this convention ‘factoring contract’ means a contract concluded

between the party (the supplier) and another party (the factor) pursuant to which – (a) the supplier may or will assign to the factor receivables arising from contracts

of sale of goods made between the supplier and its customers (debtors) other than those for the sale of goods bought primarily for their personal, family or household use;

(b) the factor is to perform at least two of the following functions: — fi nance for the supplier, including loans and advance payments; — maintenance of accounts (ledgering) relating to the receivables; — collection of receivables; — protection against default in payment by debtors;

(c) notice of the assignment of the receivables is to be given to debtors.