Theoretical and Practical Considerations Regarding the Accounting and Tax Treatment of Factoring Operations in Romania

In the context of globalization, the transactions between business partners become more and more diverse and require special attention from commercial banks and factoring companies, both with regard to settlement, in order to avoid possible financial blockings, and with regard to the security and protection of the interests of parties, by using funding techniques, specific products and services. Factoring provides companies the possibility of funding based on trading receivables received from third parties. The aim of the article is to shed light on the accounting and tax approach of this funding technique that, although it has lots of advantages, is too little known and employed in the Romanian business environment.