.

This study explains factoring as a shorHenn finance teenique.. Factoring, a higher-cost financing lecnique. may mean the company has liquidity difficulties. Factoring is about accounl receivable, a major item on asset" of a balance. It means that receivables are sold to a factor. The receivables ofa finn are sold to a factoring company, that firm gelS approximately 80lJ: financing. Factoring, that is, after getting an agreement with a factoring company, provides financing and certain serves like accounting of that item, undertaking risk, money received and consultation for finns.It is known that big companies can easily solve their financial and marketing problems. Small and medium sized enteJPrises, however, confronted with difficulties to find solutions for their problems. From this direction factoring gives many facilities to small and medium sized enterprises. Therefore, it was tried to mention how factoring provides easincsses for firms.In this page it was stated the classification of factoring like undisclosed factoring, disclosed factoring, maturity factoring, discounting factoring, etc..For example, factoring can be done either on a notification basis, where the seller's customers remit directly 10 the factor, or on a non-notification basis, where the seller handles me collections an.d remits to the factor. It can be said that factoring may have impressions-for regulating the cash flow of firms that couldn't get credit from banks or somewhere else. In our economy whi(;h has higher interest and inflation rates factoring has an important role for s~lving financial probkms of firms, especially for small and medium sized enterprises. Factoring hps traditionally been most closely associated with the garmenl industry, but is used by companies in other industries as w.eIl.