Definition
Factoring (banking law and finace law) (Ro.: factoring, Fr.: affacturage, n.m., Gr.: πρακτορεία επιχειρηματικών απαιτήσεων, Cz.: faktoring) (See also: accounts receivable financing, cash flow, lending transaction) = a funding source through which a company obtains capital by selling its accounts receivable, at a discount, to a financial institution.
This type of financing helps companies to maintain the cash flow when their resources are blocked in invoices. The risk of non-collecting the debt is assumed by the financial institution.
Useful links
Legislation
http://www.unidroit.org/instruments/factoring - Unidroit Convention on International Factoring, Ottawa, 1988 [English]
Case law
http://law.justia.com/cases/arkansas/supreme-court/1965/5-3391-0.html - Manhattan Factoring Corp v. Orsburn, Supreme Court of Arkansas, Arkansas, USA, 1965
http://hudoc.echr.coe.int/sites/eng/Pages/search.aspx#{"fulltext":["factoring"],"documentcollectionid2":["GRANDCHAMBER","CHAMBER"],"itemid":["001-71299"]} - Capital Bank Ad v. Bulgaria, European Court of Human Rights, Strasbourg, 2005
Organisations and associations
http://www.factoring.org/ - International Factoring Association
https://www.americanfactoring.org/ - American Factoring Association (USA)
http://www.ifgroup.com/ - The International Factors Group
Online Publications
http://www.forbes.com/sites/cherylsnappconner/2013/04/10/money-money-how-alternative-lending-could-increase-your-companys-revenue-in-2013/ - Conner, C., 2013, 'Money, money' - How Alternative Lending Could Increase Your Company’s Revenue in 2013, Forbes
http://www.businessnewsdaily.com/1211-factoring-small-business-loan-alternatives.html - Angeles, S., 2014, Factoring Offers Financing Alternative for Small Businesses, Business News Daily
http://www.businessweek.com/stories/2008-10-03/the-pros-and-cons-of-factoringbusinessweek-business-news-stock-market-and-financial-advice - Taulli, T., 2008, The Pros and Cons of Factoring, Business Week
http://www.thefundwell.com/2013/01/factoring-versus-accounts-receivable-financing-what-your-business-needs-to-know/ - Onyeagoro, C., 2013, Factoring Versus Accounts Receivable Financing: What Your Business Needs to Know, FundWell
http://www.bizfilings.com/toolkit/news/finance/factoring-improves-cash-flow.aspx - Magos, A., 2014, How Factoring Can Improve Your Small Business Cash Flow, BizFilings
Publications
Bjørn, B., 1995, Factoring: a comparative analysis: the legal and practical implications of factoring as practised in the United States, England, and Denmark, Copenhaga, Økonomforbundets
Klapper, L., 2005, The Role of Factoring for Financing Small and Medium Enterprises, Washington DC, The world Bank
National Commercial Finance Conference, 1980, Factoring: past, present, & future, New York, National Commercial Finance Conference
Salinger, F. R., 2006, Factoring: the law and practice of invoice finance, London, Sweet & Maxwell
Salinger, F. R., 1991, Factoring Law and Practice, London, Sweet & Maxwell