Factoring as one source of short-term financing

The current stage of economic development in the context of a macroeconomic recession makes new demands on the search for effective methods of financing the working capital of enterprises. Due to the fact that external financing is a significant source of replenishment of the working capital of economic entities, the need to search and analyze innovative instruments for financing it is of paramount importance. Sources of external financing are divided into long-term (investment), mixed and short-term. Factoring is one of the main types of short-term financing.