APPLICATION OF FACTORING UNDER THE CRISIS CONDITIONS

Enterprises have difficulties in financing the needs for the net circulating capital connected with operating activities during a crisis, as banks under the crisis conditions limit availability of loans. One of the solution is to decrease the needs for the net circulating capital. Factoring is a fin...

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Autores principales: R. Payevska-Kvasny, K. Krechmanska-Gigol
Formato: article
Lenguaje:RU
Publicado: Real Economics Publishing House 2014
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Acceso en línea:https://doaj.org/article/71b1a05e5ca84dff8c0d8cbe4817f7bb
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Sumario:Enterprises have difficulties in financing the needs for the net circulating capital connected with operating activities during a crisis, as banks under the crisis conditions limit availability of loans. One of the solution is to decrease the needs for the net circulating capital. Factoring is a financial service application of which results in decreasing these needs. The restructured factoring combining the results of the debts factoring (shortening of the payment rotation cycle) and reverse factoring (extension of the commercial obligations performance cycle) is especially useful during a crisis. The article has the results of the studies confirming that the factoring ensures financial safety to enterprises more than a banking loan