Glossary · Accounting & finance

Dailly assignment: finance your invoices through your bank

5 min read · Updated on 3 July 2026

Definition Dailly assignment (named after the senator behind the 1981 law) lets a business assign its trade receivables to its bank using a simple form, in exchange for a cash advance. It is the banking alternative to factoring: lighter, ad-hoc, tied to your existing banking relationship—but without outsourcing collections.

The full entry

The essentials in brief

Principle: a schedule lists the assigned invoices, the bank advances the funds — often within 24-48 hours.
Framework: a master agreement signed once with the bank, then schedules as needed.
Typical cost: interest (close to short-term bank rates) + fee per schedule — often cheaper than factoring.
You retain collection: unlike factoring, the bank does not contact your clients (unless notified).
Reserved for B2B or public sector receivables — not B2C.

I The mechanism

How it works in practice

Setup happens in two stages:

The master agreement with your bank: it sets the maximum outstanding amount (e.g. €150k), the rate, fees, and mode (with or without client notification). This is an annual negotiation, part of your overall short-term credit package.
The forms as needed: each form lists the assigned invoices (client, amount, due date) and transfers ownership of the receivables to the bank, which credits your account.

Two modes, with very different effects:

Without notification (most common): your clients are unaware; they pay you as usual, and you repay the bank. Flexible and discreet—but the bank bears a "double assignment" risk, so it reserves this mode for businesses it knows well.
With notification: the bank notifies the client, who must pay the bank directly. More restrictive commercially, but allows higher limits or retaining the line when cash flow tightens.

The cost, honestly compared: interest pro rata on the advance (typically Euribor + 1-3%) + fee per form (flat or percentage). For a €12,000 invoice at 60 days, expect €60-150 all-in — vs. €180-480 for factoring. The difference is clear: the bank handles neither collections nor credit insurance. You pay less because you do more.

24-48 h

between submitting the form and the credit to your account

1981

the Dailly law — 40 years of stabilised case law

≈ ½

of the cost of factoring, for an equivalent receivable (but without collections or insurance)

II The trade-off

Dailly, factoring or overdraft: the trade-off

Choose Dailly when:

The need is ad-hoc or seasonal (peak working capital in July, a large project to pre-finance);
Your clients are reliable and you want to maintain control of the relationship (no factor involved);
Your bank knows you well — Dailly is a trust-based banking product.

Prefer factoring when:

The need is structural (continuous growth, working capital tracking revenue);
You want to outsource reminders and collections, or cover non-payment risk (non-recourse + credit insurance);
Your business is young or your financials are modest: factors lend based on your CLIENTS’ quality, banks lend (also) based on yours.

Use overdraft for: short, unexpected gaps (a few days), not to finance identified receivables — misuse is what makes it expensive.

Dailly pitfalls to avoid:

Double assignment: assigning the same invoice twice (to Dailly AND a factor, or on two forms) is a criminal offence. Invoicing software that tracks the "assigned" status of each invoice eliminates the risk of error.
Client non-payment: Dailly is almost always with recourse — if the client does not pay, the bank debits you again. This is NOT credit insurance.
Capped limit: in rapid growth, the master agreement’s limit quickly becomes restrictive; anticipate renegotiation before you need it.

💡

Golden rule

Dailly is negotiated before cash flow tightens: a master agreement signed in good times can be activated in 48 hours in a crisis. Requesting it urgently, with overdraft already maxed out, means negotiating at the worst time — and the worst price.

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III Frequently asked questions

Answers to the questions we get asked most.

Which receivables can be assigned under Dailly?

Any professional receivable: B2B invoices, receivables from the public sector (public contracts – very common in construction), or even future receivables provided they are identifiable (signed contract, upcoming services). Practical exclusions: B2C, and receivables already assigned or pledged. Export receivables are possible, but banks scrutinise them closely (prefer export credit insurance as a complement).

Will my customers know that I have assigned their invoices via Dailly?

In non-notified assignment: no – they pay normally into your account, nothing changes for them. However, the bank may notify at any time (this is its right, often exercised if your financial situation deteriorates). In notified assignment: yes, the customer receives the notification and must pay the bank directly – any payment made to you does not release them from their obligation. If discretion is strategic, negotiate the non-notified mode in the agreement and maintain your ratios: bank trust is what keeps it in place.

What happens if my customer disputes the assigned invoice?

Any defences the customer could have raised against you (defective work, partial delivery, pending credit note) remain valid against the bank: a disputed receivable becomes unrecoverable for the bank… and it will then seek recourse against you. Hence the golden rule: only assign CLOSED receivables – delivery completed and documented, signed acceptance report or delivery note, no open claims. Assigning a disputed invoice for cash flow only delays the problem by a few weeks, with added costs.

How it works in practice

Dailly, factoring or overdraft: the trade-off

What if a tool handled this for you?

Answers to the questions we get asked most.

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