Open AccessAPPLICATION OF FACTORING UNDER THE CRISIS CONDITIONS
Author(s) -
Р. Пайевска-Квасьны,
К. Кречманьска-Гиголь
Publication year - 2014
Publication title -
strategičeskie rešeniâ i risk-menedžment
Language(s) - English
Resource type - Journals
eISSN - 2618-9984
pISSN - 2618-947X
DOI - 10.17747/2078-8886-2012-6-86-93
Subject(s) - factoring , loan , business , payment , capital (architecture) , financial crisis , safety net , financial system , finance , economics , macroeconomics , history , archaeology , political science , law
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