ECONOMIC AND LEGAL CHARACTERISTICS OF FACTORING OPERATIONS IN UKRAINE
Journal Title: Baltic Journal of Economic Studies - Year 2018, Vol 4, Issue 3
Abstract
The objective of the article is to determine the economic and legal aspects of factoring operations in Ukraine, to disclose the specificity of the legal regulation mechanism of factoring operations, and to determine the peculiarity of economic activities financing with the help of factoring. The subject of the study is the Ukrainian experience in the formation and development of factoring activity. Methodology. The research is based on the historical and comparative method, with the help of which the study of the introduction of factoring in Ukraine is made. The analysis determines the reasons for the lack of development of classical factoring in Ukraine, where legal constructs of factoring operations do not correspond to the economic substance of this type of financial activity. On the basis of the comparative legal analysis, there are determined countries with classical factoring markets and the largest amount of working capital. The results of the study point out the construction preventing reasons of the classic factoring market in Ukraine, aimed at the development of small- and medium-sized businesses. They are related to not only the drawbacks of domestic legislation and practice of its application but economic factors as well. Factoring companies have weak financial potential and no substantive financial amounts since accounts receivable are financed by companies at their own expense. Funds request from bank loans or other borrowed funds for these purposes decreases annually. Practical implications. The positive experiences of the classical factoring market abroad demonstrate that for the implementation of classical factoring market, cheap loans or means of currency issuing for securities (such as bonds) should be available. Moreover, the proper implementation by the law enforcement authorities of the decree on debt collection from the debtor should be ensured, as it reduces the risk to the factor. This makes the search for non-traditional ways of guaranteeing the restitution of funded accounts receivable unnecessary. Originality. The comprehensive analysis of the factoring market state in Ukraine, its legal and economic aspects are the basis for developing the most promising directions of domestic civil legislation progress in the field of factoring activity.
Authors and Affiliations
Petro Nemesh, Iryna Nesterova, Vasil Fennych
Keywords
Related Articles
- EP ID EP560827
- DOI 10.30525/2256-0742/2018-4-3-198-202
- Views 74
- Downloads 0
ADVANCED VOCATIONAL TRAINING OF ENVIRONMENTAL PROFESSIONALS FOR PROVIDING SUSTAINABLE DEVELOPMENT OF RAILWAYS OF UKRAINE ON THE WAY TO EUROPEAN INTEGRATION
The subject of the research is to study the state of issue of advanced training of environmental professionals and specialists on six railways of Ukrzaliznytsia PJSC: Donetsk, Lviv, Odesa, Pivdenna (Southern), Pivdenno-Z...
ACCOUNTING AND ANALYTICAL PROCUREMENT OF STATE FINANCIAL CONTROL AND DIRECTIONS OF ITS IMPLEMENTATION IN UKRAINE
The growth of the constructive role of public financial control in management is a logical consequence of the modernization of the established system of state financial control and necessitates an update of the ideology...
ACCOUNTING AND ANALYTICAL AND MANAGEMENT TASKS FOR THE CLASSIFICATION OF INDUSTRIAL ENTERPRISES
Modern economic development trends such as globalization of markets, increasing competition, changing consumer demand, shortening life cycle of goods and technologies, increasing demands on their quality, and rising cost...
THE MANAGEMENT OF BUSINESS ACTIVITY OF ENTERPRISES: SCIENTIFIC AND ECONOMIC ANALYTICS
The main purpose of the paper is to comprehensively study and analyse theoretical aspects of management of business activity of enterprises, revealing their main disadvantages and differences. The research methods will a...
CRIME IN FOREIGN ECONOMIC SPHERE IN THE POST-SOVIET STATES
The purpose of the article is to reveal the content of organized crime in foreign economic sphere and the factors that determine the state and trends of its development. It is revealed the influence of corruption as a fo...