1. Factoring the effective instrument of receivables’ management for SME ?

2. FACTORING DEFINITION - finance for the supplier, - protection against default in payment by debtors, - maintenance of accounts relating to the receivables, - collection of receivables.

3. FACTORING – WHY ? I. Finance for the supplier Improvement of financial liquidity Financing activity depending on the level of sales without necessity to contract a loan Possibility to obtain discounts from suppliers Importers-decreasing of currency exchange risk

4. FACTORING – WHY ? II. Protection against default in payment by debtors Buyer’s creditworthiness verification Chance to maintain only positive business contacts with the Buyer Guarantee of receivables inflow Profit in real cash – not in bad debts

5. FACTORING – WHY ? III. Maintenance of accounts relating to the receivables and collection of receivables Usage of software, knowledge and experience of factor in maintenance of debtor’s accounts, reminding collection of receivables Outsourcing of sales ledger management