The phenomenon of factoring, benefits for beneficiary and national economy

The essay encompasses three thematic units focused on the phenomenon of factoring and its benefits for beneficiaries and national economies. In the first part the essay analyses background, concept and participants, types of factoring products, and how factoring functions from the perspective of involved risks. In the second part the essay analyses benefits of factoring for beneficiaries, especially their financial performances and how factoring decreases collection risk and costs of working capital financing. In the third part the essay analyses benefits of factoring for national economies tackling its capabilities to support declining companies and how factoring upgrades macroeconomic figures and features of financial sector. This part explains the way how national economies are organized through international factoring based on two factor systems. The goal of the essay is to pinpoint micro benefits and their impact on macro environment, i.e. national economy.