РАЗПРОСТРАНЕНИЕ НА ФАКТОРИНГА В БЛГАРИЯ
DIFFUSION OF FACTORING IN BULGARIA

Author(s): Galya Taseva-Petkova
Subject(s): Economy
Published by: Бургаски свободен университет
Keywords: factoring; accounts receivables; trade credit
Summary/Abstract: The article examines the diffusion of factoring in Bulgaria. The analysis used data from empirical sociological survey conducted among 1000 non-financial enterprises. The results revealed a low diffusion of this service in the country. Empirical tests showed statistical connection between the use of factoring and basic characteristics of enterprises as their main activity, size and breadth of the market. It was found that a significant factor in low diffusion of factoring in Bulgaria is the fact that it is available mainly to large-sized companies. Construction and industry sectors are with the highest percentage of companies using factoring. Among the explanations for this is that they have a larger scale and higher need for short-term financing, due to the slow turnover of assets. Wider diffusion of factoring is observed among the companies exporting goods and/or services. Among the reasons for this are high risks accompanying foreign trade. Moreover, the administration of export transactions is more expensive and difficult. In addition, these transactions are usually for larger amounts and longer periods of deferred payment, creating liquidity problems for companies. It was also found that an essential factor for the low diffusion of factoring in Bulgaria is that companies are not familiar with this service.

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