FACTORING – ALTERNATIVE OF SHORT-TERM FINANCING FOR COMPANIES

Nicoleta Bărbuţă-Mişu

Risk in Contemporary Economy, 2013, 166-171

Abstract: In developed countries, had been created formidable conditions for encouraging the factoring business, because using this instrument of investment and financing have grown the economic and financial stability of the company and generated a more efficient management of accounts receivable by the policy of claims recovering. Also, the factoring may be considered both a commercial and financial activity. The essential role of the factoring companies is given by taking the place of company in activities that are not referring exclusively to the commercial field. Given the importance of this financing operation, in this paper are presented different ways of defining, their importance, advantages and disadvantages for the company, the return for the factoring of accounts receivables and the real cost of factoring.

Keywords: working capital financing; policy of claims recovering; cost of factoring; trade credit; total assets turnover; insolvency risk (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fserec:y:2013:p:166-171

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