Factoring – Current Method of Financing Foreign Trade in the Context of Global Financial Crisis. Presentation, Analysis and Accounting Treatment

In today’s global context of frequent financial blockages, of reduction of external transactions and more, companies are forced to find alternative sources of financing for traditional bank loans, factoring being one of them. Until the global economic crises started, many entities pursuing different transactions considered inappropriate that other entity would handle the settlement of bills, the delays in payments of foreign partners not being particularly noticed. However, after growing resentment of financial and economic crises’ effects, perception suddenly changed, factoring and other modern financial techniques being promoted with priority, due to their benefits in the meaning of assuring the necessary financial resources for conducting and development of economic international economic transactions in useful time. Therefore, we considered as important the presentation and analysis of this method of financing and of the particularly financial-accounting aspects that poses, due to major advantages attracted by factoring through streamlining and developing international trade.