The phenomenon of legal protection for the parties to the factoring agreement. The purpose of this study is to analyze: 1) How is the legal basis of factoring agreements in accordance with existing rules according to Indonesian law?; 2) What are the rights and obligations towards the parties to the factoring agreement?; 3) What is the legal protection of the parties to the factoring agreement?. The research method used is empirical juridical with a statutory approach, concept approach, and case studies. The results showed that: 1) the legal basis in factoring agreements is regulated into two types, namely administrative and substantive legal arrangements. Administrative legal arrangements are contained in Article 6 letter l of Law No. 7 of 1992 which has been amended by Law No. 10 of 1998, hereinafter referred to as the Banking Law, Presidential Financing Regulation, and Regulation of the Minister of Finance of the Republic of Indonesia No. 84 / PMK.012 / 2006 concerning Financing Companies. While the Substantive Legal Basis which is divided into Pure Substantive, namely Article 1338 BW is related to the principle of freedom of contract. So that the parties are free to make an agreement provided that they have fulfilled the conditions for the validity of the agreement as contained in Article 1320 BW, namely agreement, competence, certain objects, and permissible causation. In addition, there is a procedural Substantive Legal Basis namely in article 613 BW related to cessie and subrogation based on Articles 1400 BW, 1459 BW, 1491 BW, 1493 BW, 1495 BW, 1533 BW , 1534 BW and Article 174 KUHD-Article 177 KUHD. 2) A factoring agreement is a direct agreement between a factoring company and a client, then there must be an agreement between the factoring company and the client. Factoring agreements are made in standard form or standard agreements, which are agreements made a priori by one of the parties. 3) The forms of legal protection that can be provided to the Factor are: a) The use of Recourse Factoring to protect the Factor; b) Implementing Personal / Corporate Guarantee Considering that the Factoring business is vulnerable to risk.