Scholarly record

THE USE OF FACTORING IN THE DEVELOPMENT OF THE ACTIVITIES OF RUSSIAN COMPANIES

A. Kashirtseva, Y.Vertakova, I. Parshutina

Abstract

Modern economic relations require companies to constantly move forward, flexibility, innovative methods of production, management, improve their financial stability. Factoring has huge prospects of development in Russia, as it allows organizations to efficiently resolve the problems of liquidity and cash-flow. The relevance of the study due to the fact that the use of factoring in the activities of the enterprise allows to evaluate fairly the financial condition, increases the turnover of working capital, which in turn has a positive effect on strengthening the financial stability of the company. The purpose of this article is to assess the implementation and impact of factoring in the activities of Russian companies using advanced foreign experience. Methodological basis of research is of General scientific methods of research: economic, statistical, comparative analysis, system approach and synthesis; the works of foreign and domestic scientists-economists on theoretical and practical aspects of factoring. The study provided the statistical data and data from international rating agencies. The result of the present work is development of recommendations on application of tools factoring in the activities of Russian companies. Practical significance of the research is to justify the use of factoring as a financing instrument of the organization.

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