STUDY ON THE ROLE OF FACTORING IN BUSINESS FINANCING.

The financial challenges of the last two years generated by the pandemic, military conflicts, etc. have determined Romanian companies to evaluate their businesses and choose the best sources in order to continue their economic activity. The companies' short- and medium-term objectives were shaped according to the new economic and social conditions. Access to financing is a key element for development, to build new jobs, to remain competitive. Consequently, the need for short-term financing increased and was honored by accessing factoring products by companies. Through the conducted study, it was highlighted that for small and medium-sized companies, factoring products are of interest and are very useful. The evolution of the products granted by Romanian financial institutions are in correlation with the international market, but the proportions are different. Developed countries promote financing through factoring, the proof is the volumes reported by factoring companies. At the same time, financial institutions maintain their prudential criteria in conditions where the economy is influenced by social and political factors, some unpredictable and with a high degree of risk. [ABSTRACT FROM AUTHOR]