This form of business finance has developed very quickly in Poland in recent years, as it has around the world. Thanks to his being able to versatility to help the financial liquidity of the company with the improvement from all industries at preserving the safety above all.

Straightest it is possible to define the factoring as the serving tool for financing invoices until their repayments by the recipient. Factoring is a bundle of services comprised of financing and accounts receivable management, taking over the risk and the collection of the payment on behalf of the customer. On receiving an order and dispatching the goods, the customer send the invoice to the factoring company, which pays the customer a large proportion of the invoice's value (typically around 85%), paying the rest minus the sevice charge on collection of the payment from the customer's client.

The various types of products on the market, such as recourse factoring, non-recourse factoring, incomplete export factoring, full export factoring, imported factoring and reverse factoring were explained.

Currently recourse factoring is the most often encountered form of this services, while reverse factoring is becoming more common among suppliers.

The popularity of factoring is growing fastest in the UK, China and France and in Germany. Poland is in 15th place globally in terms of the use of factoring, and within the next few years is predicted to climb to tenth place. Currently, Poland is in ninth place, but shortly will be in fifth place, behind the UK, with France, Germany and Italy.

Factoring is often is being compared to credit, however once the necessary documentation has been completed, decisions are taken more quickly and efficiently. The factor sets the limit, checking the credi-worthiness of the recipients of the customer's goods, whereas when seeking credit, it is the borrower whose credit-worthiness is checked.

In the course of conducting the procedure, contracting parties supporting the factor in the objective of verification and collection of the payment.

Factoring is directed at large, medium and smaller companies; everything depends on the industry and the individual situation of the company. To examine the possibilities it is best to discuss one's situation with the factor who will suggest the best solutions for the company. Factoring is a tool that serves to improve the financial liquidity of the company, whilst debt collection isn't.