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Factoring – Alternative Of Short-Term Financing For Companies

Author

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  • Nicoleta Barbuta-Misu

    (Dunarea de Jos University of Galati, Romania)

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.

Suggested Citation

  • Nicoleta Barbuta-Misu, 2013. "Factoring – Alternative Of Short-Term Financing For Companies," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 166-171.
    • Handle: RePEc:ddj:fserec:y:2013:p:166-171
    as

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    References listed on IDEAS

    as
    1. Klapper, Leora, 2006. "The role of factoring for financing small and medium enterprises," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 3111-3130, November.
    2. Ivanovic, Sasa & Baresa, Suzana & Sinisa, Bogdan, 2011. "Factoring: Alternative Model Of Financing," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 2(2), pages 189-206.
    Full references (including those not matched with items on IDEAS)

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