Home  Journals  Finance and Credit  10(346) – 2009 March

Evaluation of the efficiency of factoring contracts porfolio

Available online: 13 September 2009

Subject Heading: Financial management

JEL Classification: 

Theory and practice of portfolio investment analysis show optimal models through solving continual programming problems. The said models are used when the security portfolio is sold/purchased, and built up, or a factoring contract is executed say for suppliers. Such transaction implies a variety of the client’s debtors, who enters into a factoring contract. That means that the portfolio will include a number of debtors, classified according to their yield and risks. The data received cause them either to be included into the portfolio or not, or to be included with the financing limit cut.
     The article deals with the said optimization problems under the following conditions: profit maximization, the general deal risk specified, and risk minimization, funds incremental value specified. The authors also analyze the stability of a factoring contract for the dairy products supplier in terms of changes in the rate of return to the factor.

Keywords: security portfolio, factoring contract, profitability and risks evaluation, change of yield rate

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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