The Economic Nature of Factoring and its Legal Manifestation in the Bulgarian Legislation and the Convention on International Factoring

Abstract

The factoring is a sophisticated financial technique and management service designed to facilitate the use of trade credit. This article illustrates the basic factoring services and namely: financing, credit protection, accounting (ledgering) and collection of receivables. It is emphasized, that factoring as a legal phenomenon includes two contracts: a contract for sale of goods or for supply of services between the supplier and its customers(debtors), on the one hand, and a factoring contract between the supplier and the factor, on the other hand.