INFLUENCE OF THE FACTORING TOOL ON THE FINANCIAL STABILITY OF ENTERPRISES FROM THE PERSPECTIVE OF ACCELERATING THE TURNOVER OF WORKING CAPITAL

Author(s): Konovalova M.A.

Rubric: Economy

DOI: 10.21777/2587-554X-2020-4-46-51

Release: 2020-4 (35)

Pages: 46-51

Keywords: factoring, factor, current assets, turnover of working capital, business activity, accounts receivable, financial stability

Annotation: The article deals with the influence of factoring operations on the turnover rate of working capital on the example of 15 companies in the packaging industry, selected due to the peculiarities of their production process, characterized by minimal seasonal fluctuations and selling products exclusively to wholesale buyers. Companies were grouped by the degree of involvement of receivables in factoring transactions into three categories: the first group includes 5 companies, handed over to the factor of about 75 % of accounts receivable, the second group including 5 companies that gave the factor of about 40 %, and the third group of 5 companies presented a factor of about 15 % of its receivables. The main purpose of the study is to determine the degree of influence of factoring operations on the acceleration of the turnover of current assets of the organization, depending on the share of accounts receivable transferred to factoring. The results of the study showed that 67 % of the companies selected for analysis confirmed the assumption that with an increase in the volume of financing of factoring transactions, the speed of turnover of working capital significantly increases, which ultimately allows us to determine the presence of a strong inverse relationship between the studied variables.

Bibliography: Konovalova M.A. INFLUENCE OF THE FACTORING TOOL ON THE FINANCIAL STABILITY OF ENTERPRISES FROM THE PERSPECTIVE OF ACCELERATING THE TURNOVER OF WORKING CAPITAL // Economics and Management. – 2020. – № 4 (35). – С. 46-51. doi: 10.21777/2587-554X-2020-4-46-51