Did you know that today the cession de créance Dailly constitutes almost the totality of the structures of cession de créance in France? This assignment of receivables was developed with the law of 2 January 1981 and revised in 1984. The cession de créance Dailly is an interesting financing solution for industrial companies that urgently need liquidity. In this article, you can find out more about this claim and discover how to make better use of it in your company.
The assignment of Dailly claims was created by Senator Etienne Dailly, author of the law (No. 81-1 of 2 January 1981 revised by law No. 84-46 of 24 January 1984). It is a form of short-term financing. The company transfers part of its business receivables to a bank to receive a credit line instead. Several conditions are set up: the type, the volume of the assigned receivables as well as the part financed by the bank. The debtor has been informed of the change of ownership of the claim, which gives the bank the opportunity to monitor its existence. The company sends the bank an assignment slip and a copy of the assigned claims. The company can thus obtain financing for part of these receivables. This is an interesting solution for companies in urgent need of liquidity.
The assignment of Dailly claims concerns only professional claims.
It is addressed to all types of companies or associations and of all sectors of activity or legal status.
It meets the needs of :
There are three parties in an assignment of a Dailly claim: the assignee, the assignor and the debtor.
Firstly, the assignor may be a legal person under public or private law or an individual acting in his professional capacity.
Then, the assignee is a financial institution that can set up a credit, generally a bank.
And finally, the debtor is the customer who pays the assignor in order to pay the credit set up by the bank.
Firstly, the assignment of a Dailly claim cannot finance everything, for example, maintenance claims cannot be realised.
The assignment of a claim must be professional, i.e. it must be made between legal entities or by a natural person but within the framework of his professional activity.
The assignor signs an agreement with the bank specifying the various terms and conditions of use and collection. This agreement specifies the amount, the limit and the type of claim validated. It can be set up only by guarantee or discount.
The cost of a Dailly assignment is charged to the assignors by the banks. They take into account interest on the credit as well as management fees.
It is important to have a good medium-term vision to set up this type of financing. However, the cost is negotiable, it is possible to put different banks in competition or to reduce the price by reassuring the banks with evidence.
The assignment of a Dailly claim can cost between 5 and 10% of the amount excluding tax of the claim to be financed. This solution is cheaper than factoring but more expensive than a loan.
First of all, the assignment of Dailly receivables gives companies the possibility of obtaining short-term credit so that they can have cash flow without waiting for payment from customers.
It is simple to set up because it is possible to obtain a credit without having an annual minimum and there is only a proof to provide (invoice).
Moreover, it is fast: the processing time for Dailly slips can be completed within 48 hours.
And finally, it is possible to subscribe to the cession of Dailly claim in several banks.
The assignment of Dailly claims has several limitations. Indeed, the cost of implementation is high (5 to 10% of the receivable) and invoicing can be difficult to control. In addition, there are risks of non-payment, as the company benefiting from the credit is the only one responsible for the risk.
In conclusion, if you have an urgent need for liquidity, you can set up this type of financing. However, it is important to bear in mind that such financing is expensive. To find out more about the different types of financing for industrial companies, we can offer you other solutions here.