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...

Full description

Saved in:
Bibliographic Details
Main Authors: R. Payevska-Kvasny, K. Krechmanska-Gigol
Format: article
Language:RU
Published: Real Economics Publishing House 2014
Subjects:
Online Access:https://doaj.org/article/71b1a05e5ca84dff8c0d8cbe4817f7bb
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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