Efectele finanțării pe termen scurt prin factoring
The effects of short-term financing through factoring

Summary/Abstract: . The primary objectiv of this paper is to identify the effects on the economic and financial situation and the risk of bankruptcy in a company following the implementation of a factoring contract. The specialized literature presents numerous advantages of factoring financing, characteristics tested by the undertaken research. By adopting the decision of short-term financing through factoring, the aim is to obtain cash to reinvest the profit obtained, distribute dividends or accelerate the manufacturing process while meeting the main objectives of a business: making a profit and maximizing customer satisfaction.In order to investigate the effects following the implementation of factoring contracts in an entity, an extract of information from the financial statements was used, based on which the budgets necessary for the financial management for the adoption of the optimal decision were prepared.The main results of the research are the following: 1) the factoring contract without regress has a favorable effect on the economic-financial situation of the entity compared to the implementation of the contract with regress; 2) the risk of bankruptcy is lower following the adoption of the factoring contract without regression according to the applied models; 3) the opportunity cost of the regressing factoring contract is given by the assumption of the risk of non-collection at maturity of the receivables assigned to the factor, the reduction of the commercial cycle and the risk of bankruptcy.

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