Factoring as a financing technique and alternative investmentin private debt instruments within the securities market

Abstract

In any consumer society, collaboration between companies and their suppliers is essential, as the latter are the ones who meet the demand for goods and services required at different levels of production. It is very common for this business collaboration to take place through credit, giving rise to an invoice that is issued with a due date. This creates a need for liquidity among supplier companies, which are typically characterized by limited access to the financial system. Factoring appears as a solution to this problem, but also as an investment opportunity. This article will discuss the most relevant aspects of this issue.