The Role of Factoring for Financing Small and Medium Enterprises

  title={The Role of Factoring for Financing Small and Medium Enterprises},
  author={Leora F. Klapper},
Factoring is explicitly linked to the value of a supplier’s accounts receivable and receivables are sold, rather than collateralized, and factored receivables are not part of the estate of a bankrupt firm. Therefore, factoring may allow a high-risk supplier to transfer its credit risk to higher quality buyers. Empirical tests find that factoring is larger in countries with greater economic development and growth and developed credit information bureaus. “Reverse factoring” may mitigate the… CONTINUE READING
Highly Cited
This paper has 21 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.
14 Citations
5 References
Similar Papers


Publications citing this paper.
Showing 1-10 of 14 extracted citations


Publications referenced by this paper.
Showing 1-5 of 5 references

Does competition encourage credit provision? Evidence from African trade credit relationships

  • R. Fisman, M. Raturi
  • Review of Economics and Statistics
  • 2004
2 Excerpts

The role of factoring in commercial finance and the case of Eastern Europe, World Bank working paper

  • Bakker, M.-R, L. Klapper, G. Udell
  • Banco de Mexico,
  • 2004

Legal determinants of external finance

  • R. La Porta, F. Lopez-de-Silanes, A. Shleifer, R. Vishny
  • Journal of Finance
  • 1997

Similar Papers

Loading similar papers…