Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe
Factoring is a form of asset-based finance where the credit is extended based on the value of the borrower's accounts receivable. In recent years factoring has experienced phenomenal growth and has become an important source of financing-espec...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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Warsaw: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4964220/financing-small-medium-size-enterprises-factoring-global-growth-potential-eastern-europe http://hdl.handle.net/10986/14059 |
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okr-10986-140592021-04-23T14:03:21Z Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe Bakker, Marie H. R. Klapper, Leora Udell, Gregory F. ACCOUNTS ASSETS BAD DEBT BANKRUPTCY BORROWING BUNDLING CHECKING COLLECTION SERVICES COMMERCIAL CREDIT CONTRACT ENFORCEMENT CREDIT RISK DEFAULT RISK DEVELOPMENT ECONOMICS ECONOMICS ECONOMICS RESEARCH ECONOMIES OF SCALE EMERGING MARKETS EXPORTS EXTERNAL FINANCING FACE VALUE FACTORING FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED COSTS FOREIGN COMPANIES GDP INSURANCE INVENTORY LAWS LIABILITY RELATIONSHIP LENDING WORKING CAPITAL ACCOUNTING RULES ACCOUNTING STANDARDS ADVERSE SELECTION ASYMMETRIC INFORMATION BAD DEBT BALANCE SHEET BORROWING BUSINESS ENVIRONMENT CASH ADVANCES COLLATERAL COLLECTION SERVICES COMMERCIAL CREDIT COMMERCIAL FINANCE CONSUMER CREDIT CONTRACT ENFORCEMENT CREDIT INSURANCE CREDIT RATIONING CREDIT RISK CURRENT ACCOUNTS DEBT MARKETS DOMESTIC FINANCING EMERGING MARKETS EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL CONDITION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEM INFORMATION ASYMMETRY INSURANCE INDUSTRY INTEREST RATES INVESTMENT DECISIONS LIQUIDATION VALUE PRIVATE DEBT PRIVATE EQUITY RELATIONSHIP LENDING SECURED LENDING SMALL BANKS TANGIBLE ASSETS TRADE CREDIT VENTURE CAPITAL WORKING CAPITAL Factoring is a form of asset-based finance where the credit is extended based on the value of the borrower's accounts receivable. In recent years factoring has experienced phenomenal growth and has become an important source of financing-especially short-term working capital-for small and medium-size enterprises and corporations, reaching a worldwide volume of 760 billion euro in 2003. Although the importance of factoring varies considerably around the world, it occurs in most countries and is growing especially quickly in many developing countries. The authors explore the advantages of factoring over other types of lending for firms in developing economies, and discuss the informational, legal, tax, and regulatory barriers to its growth. They also examine the role of factoring in the eight Eastern European countries that became EU members on May 1, 2004-the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic, and Slovenia, referred to as the EU 8. The authors conclude that factoring offers key advantages over other lending products and is likely to become more important in these countries, and suggest policies to accelerate its development. 2013-06-20T15:50:42Z 2013-06-20T15:50:42Z 2004-05 http://documents.worldbank.org/curated/en/2004/06/4964220/financing-small-medium-size-enterprises-factoring-global-growth-potential-eastern-europe 83-89188-17-1 http://hdl.handle.net/10986/14059 English en_US Policy Research Working Paper;No.3342 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Warsaw: World Bank Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTS ASSETS BAD DEBT BANKRUPTCY BORROWING BUNDLING CHECKING COLLECTION SERVICES COMMERCIAL CREDIT CONTRACT ENFORCEMENT CREDIT RISK DEFAULT RISK DEVELOPMENT ECONOMICS ECONOMICS ECONOMICS RESEARCH ECONOMIES OF SCALE EMERGING MARKETS EXPORTS EXTERNAL FINANCING FACE VALUE FACTORING FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED COSTS FOREIGN COMPANIES GDP INSURANCE INVENTORY LAWS LIABILITY RELATIONSHIP LENDING WORKING CAPITAL ACCOUNTING RULES ACCOUNTING STANDARDS ADVERSE SELECTION ASYMMETRIC INFORMATION BAD DEBT BALANCE SHEET BORROWING BUSINESS ENVIRONMENT CASH ADVANCES COLLATERAL COLLECTION SERVICES COMMERCIAL CREDIT COMMERCIAL FINANCE CONSUMER CREDIT CONTRACT ENFORCEMENT CREDIT INSURANCE CREDIT RATIONING CREDIT RISK CURRENT ACCOUNTS DEBT MARKETS DOMESTIC FINANCING EMERGING MARKETS EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL CONDITION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEM INFORMATION ASYMMETRY INSURANCE INDUSTRY INTEREST RATES INVESTMENT DECISIONS LIQUIDATION VALUE PRIVATE DEBT PRIVATE EQUITY RELATIONSHIP LENDING SECURED LENDING SMALL BANKS TANGIBLE ASSETS TRADE CREDIT VENTURE CAPITAL WORKING CAPITAL |
| spellingShingle |
ACCOUNTS ASSETS BAD DEBT BANKRUPTCY BORROWING BUNDLING CHECKING COLLECTION SERVICES COMMERCIAL CREDIT CONTRACT ENFORCEMENT CREDIT RISK DEFAULT RISK DEVELOPMENT ECONOMICS ECONOMICS ECONOMICS RESEARCH ECONOMIES OF SCALE EMERGING MARKETS EXPORTS EXTERNAL FINANCING FACE VALUE FACTORING FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED COSTS FOREIGN COMPANIES GDP INSURANCE INVENTORY LAWS LIABILITY RELATIONSHIP LENDING WORKING CAPITAL ACCOUNTING RULES ACCOUNTING STANDARDS ADVERSE SELECTION ASYMMETRIC INFORMATION BAD DEBT BALANCE SHEET BORROWING BUSINESS ENVIRONMENT CASH ADVANCES COLLATERAL COLLECTION SERVICES COMMERCIAL CREDIT COMMERCIAL FINANCE CONSUMER CREDIT CONTRACT ENFORCEMENT CREDIT INSURANCE CREDIT RATIONING CREDIT RISK CURRENT ACCOUNTS DEBT MARKETS DOMESTIC FINANCING EMERGING MARKETS EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL CONDITION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEM INFORMATION ASYMMETRY INSURANCE INDUSTRY INTEREST RATES INVESTMENT DECISIONS LIQUIDATION VALUE PRIVATE DEBT PRIVATE EQUITY RELATIONSHIP LENDING SECURED LENDING SMALL BANKS TANGIBLE ASSETS TRADE CREDIT VENTURE CAPITAL WORKING CAPITAL Bakker, Marie H. R. Klapper, Leora Udell, Gregory F. Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No.3342 |
| description |
Factoring is a form of asset-based
finance where the credit is extended based on the value of
the borrower's accounts receivable. In recent years
factoring has experienced phenomenal growth and has become
an important source of financing-especially short-term
working capital-for small and medium-size enterprises and
corporations, reaching a worldwide volume of 760 billion
euro in 2003. Although the importance of factoring varies
considerably around the world, it occurs in most countries
and is growing especially quickly in many developing
countries. The authors explore the advantages of factoring
over other types of lending for firms in developing
economies, and discuss the informational, legal, tax, and
regulatory barriers to its growth. They also examine the
role of factoring in the eight Eastern European countries
that became EU members on May 1, 2004-the Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak
Republic, and Slovenia, referred to as the EU 8. The authors
conclude that factoring offers key advantages over other
lending products and is likely to become more important in
these countries, and suggest policies to accelerate its development. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Bakker, Marie H. R. Klapper, Leora Udell, Gregory F. |
| author_facet |
Bakker, Marie H. R. Klapper, Leora Udell, Gregory F. |
| author_sort |
Bakker, Marie H. R. |
| title |
Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| title_short |
Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| title_full |
Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| title_fullStr |
Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| title_full_unstemmed |
Financing Small and Medium-Size Enterprises with Factoring: Global Growth and its Potential in Eastern Europe |
| title_sort |
financing small and medium-size enterprises with factoring: global growth and its potential in eastern europe |
| publisher |
Warsaw: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4964220/financing-small-medium-size-enterprises-factoring-global-growth-potential-eastern-europe http://hdl.handle.net/10986/14059 |
| _version_ |
1764430419320635392 |