Factoring - the  instrument of solving liquidity problems in B&H Cover Image

Faktoring - instrument "gašenja" nelikvidnosti u BiH
Factoring - the instrument of solving liquidity problems in B&H

Author(s): Muamer Halilbašić, Adisa Omerbegović, Adnan Rovčanin
Subject(s): Economy
Published by: Ekonomski fakultet u Sarajevu
Keywords: factoring; short-term receivables; liquidity; Bosnia and Herzegovina

Summary/Abstract: Main goals of this paper are: to point out the importance of factoring arrangements in financing short-term needs of companies, with special stress on developing countries, to identify the most favorable sectors for factoring arrangements, and to analyze possibilities for introduction of factoring in B&H financial system. In addition to available studies of factoring practice around the world, in writing this paper we also used data collected through conducted poll of managers of companies across B&H. Results of our research can be summarized as follows. Factoring is the dominant source of asset based financing across the world. In recent years there has been enormous increase in the volume of factoring markets, especially in transition economies. Through conducted survey we found out that there is really strong interest of B-H companies in factoring, and that there are no serious obstacles to its introduction. According to results of this analysis it is obvious that introduction of factoring in B&H financial system would give great contribution in solving liquidity problems and would spur faster money circulation, having in mind problems with accessing banking credit lines and collecting receivables facing many companies in B&H.

  • Issue Year: 2005
  • Issue No: 25
  • Page Range: 227-248
  • Page Count: 22
  • Language: Bosnian