Transfer of Credit

Accounts receivable or credit in trade is something that cannot be avoided. In general, suppliers have receivables from their distributors due to the distributor's outstanding obligations. With these receivables, it often causes the company's financial flow to be hampered. One of the efforts that can be carried out by the company to liquidate the receivables into company funds is by transferring the credit. How can the transfer of credit be carried out under Indonesian law?

One of the credit transfer procedures that are often used by the trade company is by doing a cessie. Creditors can transfer their credit to other parties who are interested in these claims. In general, the transfer between the creditor (cedent) and the recipient of the credit (cessionaris) can be done by making a written deed or an underhand letter, then notifying the debtor (cessus). At that very moment, the creditor can legally transfer the right to collect the credit to and ask for a number of payments from the recipient of the receivable in exchange for the right to be transferred to him.

Suria Nataadmadja & Associates Law Firm

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