A descriptive analysis of the financial product called "factoring" in Honduras, 2015-2016 period

Abstract

Factoring is a financing tool that companies can use to attend short terms capital needs, collection management and hedging credit risk, among other services. The difficulties to access a credit, caused by the presence of asymmetric information in financial markets, drives to the search of alternative sources of financing, including factoring, particularly in the case of SMEs. Additionally, the provision of other services attached to finance it performs its potential. Furthermore, within different types of factoring, international factoring is a catalyst for improving the operability and access to international markets. While the volume of factoring in the world has increased in recent years in Honduras it’s still not widespread, being among the lowest levels in the region.

This analysis aims to describe the subject well known as financial factoring explore their metrics, dimensions and identifying products similar to factoring in local Honduran context. Noting its benefits and constraints, this should be evaluated by the companies, when such service is required.

After exploring the empirical evidence, that supports the confirming tool, along the Honduran business ambience, one may infer that this mechanism is truly a treasury upgrader, nonetheless, its applicability may not be sustainable in time, due to specific gaps, that are manifest along the local and regional business landscapes that regulate the financial and commercial floats, in a efficient and interrupted manner.

Revista Ciencia y Tecnología No. 17, December 2015 pp.160-175