"Is Factoring an alternative to bank financing"?

Factoring is an instrument to professionally manage receivables

Factoring is a managerial support and a financial technique, with the purpose of satisfying company requirements of trade credit management.

Factoring involves different services:

• administration, management and collection of credits
• legal support during the collection of claims
• evaluation of customer reliability
• advance of credits before expiry
• completion guarantee

Therefore Factoring is not an alternative to bank credit, but it certainly has a financial component that is a complementary choice to other financial sources available for the company.