Opportunities and pitfalls of factoring in relieving insolvent companies and the economy
Journal Title: Acta Economica - Year 2013, Vol 11, Issue 18
Abstract
Increased competition on the market, as well as the effects of the global crisis put the vendors in a position to grant all their customers longer payment terms. Even with the extending of terms for payments, customers are not able to carry them out causing the insolvency of many legal entities. Factoring as a specific and alternative form of financing is one of the solutions to this problem that provides the ability to sell receivables to specialized financial institution-factor. When using factoring, all of its advantages and disadvantages have to be taken into consideration. It is necessary to analyze the cost of factoring and decide whether to proceed or not with this arrangement.
Authors and Affiliations
Драган Микеревић
Keywords
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- EP ID EP43762
- DOI https://doi.org/10.7251/ACE1318191M
- Views 277
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