This work focusses on factoring as a new service in the financial industry. Over the past fifteen years, an increasing number of small and medium-sized companies have begun to consider factoring as a practical source of working capital. Unfortunately, the availability of accurate information and time has not kept the same pace with the growing interest in this used form of funding. The financial sector, especially the banking sector, has been hit by the difficulties generated by the tensions of debt dependence, which are affecting the banking market assessment and its ability to create medium and long-term funds. Consequently, making a comparison with the past, in general, the most valued valuation methods are the cost of funds which have increased significantly. Current economic conditions, characterized by credit constraints, make factoring one of the most favorable solutions for businesses. This funding method is one of the ways it takes a short time to negotiate and one of the easiest methods to provide working capital funds.
Factoring services offer an alternative to credit to companies that need little help with funds. By selling your receivables to a factoring company, you receive a portion of the forward amount and receive the rest, minus a percentage that the company receives as a payment as soon as the amount is collected. You get most of your funds before the customer has paid the account, instead of waiting until after paying the bill. The factoring service works to collect accounts receivable so that you can devote your resources and efforts elsewhere to your business. Through factoring, businesses can: enable their boards and senior management to make better informed decisions, proactively manage the provisions and effects on capital plans, make strategic decisions with a view to mitigating risks in the event of current underlying conditions, get assistance in understanding the evolving risk nature of the banking sector. Key words: Albania, Factoring, Services, Financial Institutions
Inhaltsverzeichnis (Table of Contents)
- CHAPTER I INTRODUCTION
- I. Research focus
- 1.1 Factoring in Albania
- 1.2 Factoring in EU countries
- 1.3 Factoring in the world
- 1.4 The traditional factoring and factoring documents online
- 1.5 Objectives of the study
- 1.6 Factoring towards financing loans
- 1.7 Leasing
- 1.8 The importance of factoring
- CHAPTER II LITERATURE REVIEW
- 2.1 An overview
- 2.2 History of factoring
- 2.3 Factoring contract
- 2.4 Factoring contract and discount bills
- 2.5 Participating parties to the contract
- 2.6 Factoring vs credit accounts receivable
- 2.7 Companies that can benefit from factoring
- CHAPTER III METHODOLOGY
- 3.1 Introduction
- 3.2 Avantages of factoring
- 3.3 Why you choose factoring company?
- 3.4 Legal environment
- CHAPTER IV ANALYSIS OF RESULTS
- 4.1 Arguments
- 4.2 Risk management in factoring
- The role of factoring in providing working capital to small and medium-sized companies
- The impact of the financial crisis on the factoring industry and its significance in mitigating credit constraints
- The legal and regulatory frameworks surrounding factoring in Albania and the European Union
- The advantages and disadvantages of using factoring services, including risk management considerations
- The potential of factoring to contribute to economic growth and business development
- CHAPTER I INTRODUCTION: This chapter introduces the research focus, highlighting the importance of factoring as a source of working capital for businesses, particularly in the current economic climate. It outlines the objectives of the study and provides an overview of the various aspects of factoring that will be explored.
- CHAPTER II LITERATURE REVIEW: This chapter provides a comprehensive review of existing literature on factoring, including its history, legal framework, and its role in the financial industry. It examines the different types of factoring contracts, the participating parties, and the potential benefits and drawbacks of using factoring services.
- CHAPTER III METHODOLOGY: This chapter outlines the research methodology used to gather and analyze data for the study. It presents a detailed account of the research methods and techniques employed, including data sources, data collection methods, and analytical approaches.
- CHAPTER IV ANALYSIS OF RESULTS: This chapter presents the findings of the research, analyzing the data collected and providing insights into the key themes and trends identified. The chapter focuses on the impact of factoring on businesses, its contribution to economic growth, and the effectiveness of its use as a source of financing.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to provide a comprehensive analysis of factoring as a new service in the financial industry, with a particular focus on its benefits for small and medium-sized companies. The study examines the recent developments in factoring, particularly in Albania and the European Union, exploring its role in supporting business growth and addressing credit constraints. The study also delves into the practical applications of factoring, including its use in financing loans and managing risk.
Zusammenfassung der Kapitel (Chapter Summaries)
Schlüsselwörter (Keywords)
The research focuses on the application of factoring as a financial service, primarily in the Albanian and European markets. It explores the various aspects of factoring, including its history, legal environment, benefits for businesses, risk management considerations, and potential for economic growth. The key terms associated with this research include: factoring, working capital, financial services, small and medium-sized enterprises, risk management, Albania, European Union, and economic growth.
- Quote paper
- Arjeta Hallunovi (Author), 2019, Factoring as a new service in the financial industry, Munich, GRIN Verlag, https://www.grin.com/document/492643
