Factoring - Definition
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Academic Research on Factoring The decision tofinanceaccount receivables: thefactoringoption, Soufani, K. (2002). Managerial and Decision Economics,23(1), 21-32. This paper analyses the concept of factoring, as well as the performance of factoring markets in the UK. This paper examines the lack of sufficient research on the factoring market, and thus seeks to profile the determinants influencing decision making in the UK factoring industry. Using data from an interviewbased survey, this paper establishes different factors which influence the decision to purchase an enterprises account. An empirical examination of organizational structure: the economics of thefactoringdecision, Smith, J. K., & Schnucker, C. (1994). Journal of Corporate Finance,1(1), 119-138. This paper analyses the behaviour of sellers who extend trade credit to their business customers, and the factors that determine their choice of whether to integrate the management of trade credit or to enter into specialized factoring contracts. Using original data from a broad cross-section of firms, the paper tests a model of this decision. The model is based on a theory of the firm that stresses transactions costs as determinants of vertical integration. On the determinants offactoringas a financing choice: evidence from the UK, Soufani, K. (2002). Journal of Economics and Business,54(2), 239-252. This paper develops and tests hypotheses that explain the choice of factoring as a financing source and the type of businesses using it in the UK. The tests focus on establishing a profile of borrowers, based on firms demographic characteristics such as age, turnover, industry, and type of legal ownership. Factoringandfinance, Forman, M., & Gilbert, J. (1976).Factoring and finance. Wiley. What the Commercial Lawyer Should Know About CommercialFinanceandFactoring, Reisman, A. F. (1974). Com. LJ,79, 146. Supply chainfinancefor small and medium sized enterprises: the case of reversefactoring, Lekkakos, S. D., & Serrano, A. (2016).International Journal of Physical Distribution & Logistics Management,46(4), 367-392. This paper examines the use of reverse financing as a financial solution to help suppliers secure financing of receivables at favorable terms. The purpose of this paper is to study the impact of reversing factoring (RF) schemes on small and medium enterprises operational decisions and performance. Trade credit management and the decision to usefactoring: an empirical study, Summers, B., & Wilson, N. (2000).Journal of Business Finance & Accounting,27(12), 37-68. This paper examines the firm's decision to use factoring amongst a crosssectional sample of 655 manufacturing companies using a rich firmlevel database. The paper develops and tests hypotheses that explain this particular choice of credit and financial management policy. The paper finds strong evidence of a financing demand explanation for the use of factoring, and also some support for theories which relate the decision to use a factor to the firm's product characteristics, to market characteristics and to the preferences of the factor. The role offactoringin financing UK SMEs: a supply side analysis, Soufani, K. (2001).Journal of Small Business and Enterprise Development,8(1), 37-46. This paper focuses upon the role of factoring in small business finance and the profile of firms using it. The analysis refers to a comprehensive survey of UK providers of factoring services. This identifies the relatively focused provision of factoring in terms of size, age, sector and stage of growth of the client base using this financial service. Reversefactoringfor SMEfinance, Tanrisever, F., Cetinay, H., Reindorp, M., & Fransoo, J. (2015). Reverse factoring for SME finance. Reverse factoring has recently received significant attention as a means for small and medium sized firms to access capital. This paper explains the value creation mechanism of reverse factoring and derive the value of reverse factoring contracts for firms. Financing firms with restricted access to financial markets: the use of trade credit andfactoringin Belgium, Asselbergh, G. (2002). The European Journal of Finance,8(1), 2-20. The paper reports investigations into the use of alternative means of financing. More specifically, the use of trade credit and factoring are examined. The paper aims to show that factoring is mainly used by small and medium-sized companies. The paper also suggests that companies which decide to use factoring are indeed less profitable, but this is simply due to their high growth and/or capital intensive investment programmes. An alternative in small businessfinance: Community-basedfactoringcompanies and small business lending, Papadimitriou, D. B., Phillips, R. J., & Wray, L. R. (1994). Public policy brief//Jerome Levy Economics Institute of Bard College. This paper shows that small businesses which are suffering from a credit crunch, "niche" financial institutions are filling the void left by more traditional sources of financing, such as commercial banks. The paper argues that the most important of these niche players are community-based factor companies, which are rapidly expanding from their client base in apparel and textiles to finance a range of firms in everything from electronics to health care.