Modern Factoring is a complex of financial services rendered to the client by the factor in exchange for concession of debts, including financing of deliveries of the goods, insurance credit the account of a condition of debts and regular granting of the appropriate reports to the client.
The contract factoring the financial agent transfers to the client of money resources, and that concedes to it the money requirement, available at it to the third person. On the part of the financial agent the contract can provide not only transfer of money in the present time, but also the obligation to give them in the future. The client, in turn, can or concedes the money requirement, or take up the obligations on its concession in the future.
 Factoring the company usually gives the supplier 60-90 % of the sum of debts at once after shipment of the goods. This financing is compensated to the factor at the expense of the subsequent receipts of means from the buyers. The rest debts, minus commissions of the factor, are paid to the supplier at once after the buyer has made payment. Thus, the factor - firm is insured against risk of payment default. Factoring represents the long-term program of financing of a working capital, and the contract on factoring to service consists on uncertain term.
To the companies, at which large volume of sales with use of the commodity credit and thus the difference in cost of the goods on an advance payment and at a delay of payment makes from 5-10 of % and above, thus term of a delay of payment changes from 10 about 120 days.
To the companies from the technological and marketing party of revolutions, ready to increase, and testing thus shortage of financial assets for this purpose. The shortage of financial assets can be caused by absence of a successful credit history, or absence of a sufficient pledge. Factoring it allows to make, and with constant increase of sales volume.
To the companies, which want to liquidate cash breaks and are ready to give back percent on minimization is brave of the liabilities, connected to delayed payment, by the contractors.
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