Factoring – method of financing of economic agents

Abstract

In the developed countries, formidable conditions have been created to encourage the factoring business, as the use of this investment and financing instrument has increased the economic and financial stability of the company and has led to a more efficient management of the accounts receivable through the debt recovery policy. Factoring can also be considered as both commercial and financial activity. The essential role of factoring companies is to take the place of the company in activities that do not relate exclusively to the commercial field. Considering the importance of this financing operation, this paper presents different ways of defining, the importance, advantages and disadvantages of the company, the efficiency of the factoring of the accounting receivables and the real cost of the factoring. JEL: M 41, F10, G15