Factors that determine factoring as a financing alternative

: the case study of BNP Paribas Factor

Abstract

Factoring is a financing alternative widely used by companies, where one of the main objectives is to minimize the average time of receipt assisting the company's treasury. This study focuses on the characteristics of the companies that most influence the choice of factoring as a financing alternative, through the case study of BNP Paribas Factor. To carry out the study, 707 observations were collected from the BNPP Factor and Iberinform databases of the characteristics of portuguese companies, such as size, turnover, legal form, sector, age and assets. Several hypotheses were tested, and it was concluded that smaller companies, both in turnover, in number of employees and in asset value are more likely to resort to factoring. On the other hand, the manufacturing and distribution sectors have not shown to be very relevant characteristics, as well as the age of the company and its legal form. This research on factoring through the study of the case of BNPP Factoring comes to bring a contribution in the research of this topic, helping to understand how the choice of factoring is very related to the characteristics of each company.

Date of Award	16 Dec 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Duarte Silva (Supervisor)