Simulation of Factoring in the Banking Sector

Abstract

Authors: Yelena Y. Makeeva National Research University The Higher School of Economics len-makeeva@yandex.ru

Konstantin Georgievich Markov - National Research University "Higher School of Economics".

Factoring is an alternative to developing of inventory credit in view of some serious advantages: no need for a supplier to invest a lot of recourses into accounts receivable, to consider organizational issues to use sales credit etc. Development of factoring services takes leading positions among most developing financial sectors. For the last decade number of factoring companies has increased in 3.4 times, and their aggregate turnover – in 3.6 times. The article considers the issues of development of forms, methods and spheres of factoring application as one of the most important instruments of modern financial management. Utilization of factoring is topical for the Russian economy as well, for it improves liquidity of domestic enterprises by means of decreasing of accounts receivable as well as liquidation of non-payments.