A RESEARCH ON THE STRUCTURE OF THE FACTORING SECTOR IN TURKEYAbstract views: 15 / PDF downloads: 19
Factoring has become a very important financing tool in recent years, especially for small and medium-sized enterprises. It can be considered essential to examine the structure of the factoring sector in terms of businesses operating in the factoring sector since it has a significant economic impact. This study aims to rank the following issues according to the degree of importance; (I) expectations of enterprises in entering the factoring sector, (II) benefits of factoring businesses to other businesses, (III) barriers to entry into the factoring industry, and (IV) reasons of companies about leaving the factoring industry. The 15 criteria determined within the scope of the research were ranked according to their importance with the Analytical Hierarchy Process method, which is one of the multi-criteria decision-making methods. In the research, the evaluations of 45 experts, each working in a different factoring company, were used.
The main findings of the research are to (I) companies enter the sector especially to make a profit, (II) high capital requirement is the most crucial barrier to entry into the sector and, (III) failure to achieve the expected profit is the most critical factor in leaving the industry. In addition, it has been concluded that the most important contribution of factoring companies to other businesses is reducing commercial risks by providing receivables guarantees