Factoring as a Method of Funding Commercial Companies
https://doi.org/10.35854/1998-1627-2021-2-139-144
Abstract
Aim. The presented study aims to examine the essence of factoring and explore potential directions for its development in the current economic environment.
Tasks. The authors determine the economic substance of factoring, making allowance for the turbulence of the global market environment and the impact of new challenges for the Russian economy.
Methods. This study analyzes legislative and regulatory acts as well as works of Russian and foreign scientists regarding the theoretical and practical problems of funding companies through factoring.
Results. The factoring market is actively developing, particularly at the times of macroeconomic instability, which slows the turnover of funds in the economy and increases the need for funding sources among market participants. The stability of the factoring market during the COVID crisis serves to illustrate the heightened interest of business entities in factoring as a tool for solving a number of problems in corporate financial management. Some characteristic trends in the development of the Russian factoring market include its synchronization with the international market, active development of blockchain technologies, growing number of market participants and expanding range of services provided within the framework of factoring transactions.
Conclusions. Having summarized the theory and practice of factoring development in Russia and abroad, the author concludes that factoring retains its potential as a tool for funding commercial organizations in the context of the development of digital technologies. The demand for factoring services among business entities will continue to grow in the post-COVID economy, which substantiates the practicability of further developing the factoring market and improving the technology behind factoring transactions.
About the Author
A. S. Vtorygin
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
Aleksandr S. Vtorygin – Student
49, Leningradkiy Ave., Moscow, 125993
References
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Review
For citations:
Vtorygin A.S. Factoring as a Method of Funding Commercial Companies. Economics and Management. 2021;27(2):139-144. (In Russ.) https://doi.org/10.35854/1998-1627-2021-2-139-144
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