| Abstract [eng] |
Small and medium-sized enterprises (SMEs) play an important role in the economy, but at the same time there are some challenges that SMEs have to face. One of them is the lack of working capital. In this work, based on the research of international organizations, the scientific literature analyzes the importance of the SME segment in the economy and a factoring as a method of financing companies’ activities. The most widely used types of factoring are presented in detail, as there are the analysis of their availability and the factors that influence the turnover of factoring also available in the analysis. An analysis of the literature revealed that factoring is a fast and efficient short-term instrument of financing working capital. This instrument is flexible and gives businesses better opportunities to plan their working capital flows, secure financing and ensure growth prospects. Factoring is directly related to sales volume: the higher the sales, the more funds are generated. These are the main advantages of factoring which can be excluded by analyzing the literature: (1) debtor insolvency risk management, (2) cost saving, (3) financial and factoring institutions take over the handling costs associated with the sale of goods. We can state that factoring is a rapidly growing financing instrument designed to finance the working capital of companies. This method of financing is widespread among small and medium-sized enterprises, which are growing rapidly and want to secure financing. Risk reduction is also any less important function of factoring. In case of factoring without the recourse, the risk of insolvency of the debtor is transferred to the financier, therefore the probability of default is minimized. There is lack of research on factoring in Lithuania and Europe. Therefore, in order to understand what the turnover, availability and business benefits of factoring depend on, an analysis of statistical macroeconomic data was performed by using the regression analysis and the expert assessment method. Prior to the regression analysis, based on literature sources and research conducted by various organizations, the main factors influencing factoring turnover were identified as follows: (1) availability of information, (2) legal framework, (3) gross domestic product, (4) international trade, including exports and imports, (5) number of SMEs, (6) turnover produced by SMEs, (7) money laundering prevention regulations. Firstly, three multiple regression models were developed and the results showed that the independent variables were not statistically significant or multicollinear, so it was decided to adjust the model to avoid multicollinearity. New models were developed with variables that had a statistically significant relations with the independent variable. Secondly, two one-way logarithmic regression models for factoring turnover and international factoring were developed. When assessing the change in the factoring portfolio, a multi-logarithmic regression model with two variables is the best fit for the data: (1) the number of SMEs and (2) the turnover generated by enterprises. During the expert assessment the representatives of SMEs in management positions or business owners were interviewed. The data was processed in Microsoft Excel. The Cronbach's alpha coefficient was calculated for the consistency of the experts' opinions. The evaluation showed that SMEs, according to experts, are willing to use external sources of financing and recognize that factoring is beneficial for operations and is more accessible than conventional financing instruments. Comparing the banking and non-banking sectors, all experts named non-banking factoring as more expensive, but with easier accessibility and, thus, faster to absorb. Despite all the advantages and relatively easier availability, all experts generally agreed that factoring could not completely replace regular financing instruments. The main shortcomings identified were additional requirements (insurance, control of invoices) and higher administrative costs. |
