Remarks Regarding the Development of Factoring In Romania

Abstract

Factoring is a means of financing businesses which is less known in Romania. Due to a poor dissemination in the local business environment, the legislative insufficiency, of a lack of consistent and attractive offers in the field, but also to other factors which we will analyze in this paper, the term is as unfamiliar as the term of "leasing" was ten or twelve years ago. The increase and diversification of the banks' product range, but also to that of the non-banking financial institutions and the harmonization with the world trend will naturally lead to adopting factoring as a frequent financing technique for the small and medium-sized enterprises in our country, as a viable alternative to the classical short-term credits. This paper explores the characteristics and the evolution of the factoring market in Romania.