Subject The article considers the determination of roles and responsibilities of parties to international factoring transactions, based on a standard model. Objectives The goal of this research is to underpin the possibility of reducing the risk and cost of export factoring transactions when using a two-factor model and a right choice of import factor, and to develop a algorithm for such a choice. Methods We used general scientific methods of research, statistical methods, and techniques of assessment and comparative analysis. Results The paper offers an algorithm for import factor selection. It enables the export factor to assess the risk of cooperation with foreign financial agent and choose the most reliable partner within a two-factor model of international factoring. The paper also includes estimates affecting the decision on import factor selection. Conclusions The use of the proposed algorithm for selecting the financial partner located in the exporter's country allows the export factor not only to determine the feasibility of cooperation with a certain foreign factor, but also to objectively assess the level of assumed risk within in the cooperation with the import factor.
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