The Dutch Act on the Abolition of Pledge Prohibitions: background key aspects and practical impact

1. Introduction

On 1 July 2025 the Dutch Act on the Abolition of Pledge Prohibitions (de Wet opheffing verpandingsverboden the Act) entered into force. The Act makes contractual clauses that prohibit the assignment or pledge of monetary claims arising from a professional or business activity legally void. Previously debtors frequently inserted “no-assignment” or “no-pledge” clauses into their contracts limiting the ability of suppliers – often small and medium-sized enterprises (SMEs) – from leveraging those receivables for additional financing.

The Act aims to broaden the pool of receivables that can be used as collateral thereby improving financing opportunities for businesses and aligning Dutch practice more closely with other jurisdictions that have traditionally limited the effect of anti-assignment clauses.

2. Background

2.1 From restrictive clauses to broader access to credit

For...