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EN
Factoring is a special independent banking business. In economic meaning it is a form of financing of commercial company based on selling short – term mostly unmatured receivables. In legal meaning it is unnamed, atypical contract about selling receivables based on precontract (pactum de contrahendo) and main contract combined with contract of assignment and elements of other contracts. Factoring has a financing function (crediting), service function and function of insuring collection of suppliers receivables (del credere function).Factoring shortens the time limit for collecting of receivables, enables the collection of receivables and thus speeding up commercial company’s money flows.
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