التخصيم كأداة من أدوات التمويل

Abstract EN

Successful Business needs constant sources of financial means.

One of the biggest problems of Business is how to provide these financial means.

Among many other methods, Business is using factoring as a method of financing.

Factoring, as a special method of financing, is realized in practice by factoring contracts.

Companies call factors.

The companies using factoring embrace it because; they get money quickly rather than waiting for the usual 30 or 60 days for payment.

As good as the arrangement is, from the empirical studies surveyed, it was discovered that this financing method is not patronized by Nigerian companies.

Factoring is a short-term financing arrangement where companies that are facing a cash flow squeeze and slow paying customers sell their receivables to specialized companies call factors.

The companies using factoring embrace it because; they get money quickly rather than waiting for the usual 30 to 90 days for payment.

As good as the arrangement is, from the empirical studies surveyed.

Factoring enables companies to finance without additional borrowing, and it is not considered as form of credit but alternative funding model.

Therefore, it is suitable as a form of financing for many companies because it enables more competitive market operations.