EFFICIENCY EVALUATION OF THE INTERNATIONAL FACTORING OPERATION FOR A COMMERCIAL BANK

Для принятия решения о внедрении международного факторинга в пакет экспортно-импортных услуг банка необходимо рассчитать экономический эффект этого мероприятия. Для этого в работе были рассмотрены модели оценки эффективности внедрения факторинга для банка, позволяющие, имея основные данные по планируемой факторинговой операции и предприятию-заемщику, оценить эффективность кредитования для банка, что позволит снизить риск потерь банка от неэффективных операций. Достижению максимального эффекта (получению идеально максимальной прибыли) на протяжении всей операции препятствуют целый ряд рисков, сопровождающих любую международную факторную операцию. Рассмотрена экономико-математическая модель, в которой за критерий эффективности было взято условие максимизации ожидания прибыли банка, учитывающей основные характеристики, качественно отличающие международную факторинговую операцию от стандартных активных операций. Выявленные качественные закономерности дают возможность для применения количественных методов оценивания эффективности и надежности факторинга. За основу построения модели международных факторных операций взята статическая модель Чессера. Поскольку международная факторинговая операция характеризуется длительностью периода финансирования, то становится необходимым использование метода NPV (Net Present Value). При проведении экспортно-импортных сделок важное место занимает изменение цены одной валюты, нормированной относительной другой. Для численной оценки данного вида риска используется модель, в основе которой лежит теория дифференциальных уравнений. Таким образом, оценка эффективности международной факторинговой операции сводится к алгоритму, в котором учитывается как действие валютного риска, так и риска делькредере. To make a decision on the introduction of international factoring in the package of export-import services of the bank, it is necessary to calculate the economic effect of this event. For this purpose, the work considered models for assessing the effectiveness of factoring implementation for a bank, which allow, having basic data on the planned factoring operation and the borrowing company, to assess the effectiveness of lending for the bank, which will reduce the risk of bank losses from ineffective operations. Achievement of the maximum effect (obtaining the ideal maximum profit) throughout the entire operation is prevented by a number of risks accompanying any international factorial operation. An economic and mathematical model is considered, in which the condition of maximizing the expectation of a bank's profit was taken as the criterion of efficiency, taking into account the main characteristics that qualitatively distinguish an international factoring operation from standard active operations. The revealed qualitative regularities make it possible to use quantitative methods for assessing the effectiveness and reliability of factoring. Chesser's static model is taken as the basis for constructing a model of international factorial operations. Since the international factoring operation is characterized by the duration of the financing period, it becomes necessary to use the NPV (Net Present Value) method. When conducting export-import transactions, an important place is occupied by the change in the price of one currency, normalized relative to the other. For a numerical assessment of this type of risk, a model is used, which is based on the theory of differential equations. Thus, the assessment of the effectiveness of an international factoring operation is reduced to an algorithm that takes into account both the effect of currency risk and delcredere risk.

Relationship Between International Factoring and Cross-border Trade: A Granger Causality Approach

Trade finance is integral for international trade as it offers fluidity and safety to the movement of merchandise and services globally. After the financial crisis of 2008–2009, there has been an increase in the use of open accounts, which enhances the possibilities for availing factoring for international trade. International factoring has witnessed considerable growth in the last decade. This article examines the relationship between international factoring and cross-border trade using Granger causality. It also examines the causal relations of international factoring with disaggregated data of cross-border trade of imports and exports. We find a unidirectional causal flow from international trade to international factoring, and a unidirectional casual flow from exports to international factoring. JEL Classification: F10, F30

23. Receivables financing

This chapter focuses on the use of receivables for financing purposes. The term ‘receivable’ is a commercial expression referring to money that is receivable in the performance and discharge of a legal obligation. The terms ‘receivables’ and ‘book debts’ are often used interchangeably. However, ‘receivables’ is more broad than ‘book debts’: it includes book debts but is not limited to them. This chapter first considers the definition of ‘receivables financing’ before discussing financing by sale, either through factoring or block discounting. It then examines financing by secured transactions, along with other doctrines affecting assigned receivables such as the rule in Dearle v Hall. It also considers proposals to reform the law governing receivables and concludes with an analysis of international factoring.

23. Receivables financing

This chapter focuses on the use of receivables for financing purposes. The term ‘receivable’ is a commercial expression referring to money that is receivable in the performance and discharge of a legal obligation. The terms ‘receivables’ and ‘book debts’ are often used interchangeably. However, ‘receivables’ is more broad than ‘book debts’: it includes book debts but is not limited to them. This chapter first considers the definition of ‘receivables financing’ before discussing financing by sale, either through factoring or block discounting. It then examines financing by secured transactions, along with other doctrines affecting assigned receivables such as the rule in Dearle v Hall. It also considers proposals to reform the law governing receivables and concludes with an analysis of international factoring.

SOME ASPECTS OF INTERNATIONAL FACTORING CONTRACT LEGAL NATURE

This article is devoted to the existence of the international factoring contract as a separate civil contract legal structure. Researchers approaches in determining the legal nature of the factoring relations are analyzed. The nature of the services provided by the factor under the contract international factoring contract is described. The specifics of the assignment of receivables under the international factoring contract are also analyzed in the article. The comparative legal analysis of the last one with the civil assignment. of receivables is made. This article is going about the application of the global assignment under the contract of international factoring. The possibility for existence the factoring under which the intermediary services are provided by factor. The correlation of services provided by the factor with the assignment of receivables under the international factoring operations is explored. The possibility for providing the complex of services by the factor under the contract is highlighted. The approach to the possibility of combining the assignment of receivables with the mediation services provided by factor is proposed. Based on the current research the conclusions about the future existence of the international factoring contract as a separate legal institution is made. The author concluded that the existence of international factoring agreement is possible only by funding the client by the factor on the irrevocable basis.

Part II A View Through Illustrative Contracts and Harmonizing Instruments, 13 Receivables Financing: The UNIDROIT Convention on International Factoring and the United Nations Convention on the Assignment of Receivables in International Trade

This chapter is devoted to international receivables financing and to two instruments in particular: the 1988 UNIDROIT Convention on international factoring and the 2001 UN Convention on the assignment of receivables in international trade. Factoring is particular form of receivables financing and the UNIDROIT Convention is confined to factoring involving notification to the debtor. The chapter explains the concept of factoring, the genesis of the Convention, and its sphere of application, connecting factor and principal provisions. The UN Convention is much broader, covering both the international assignment of receivables and the assignment of international receivables, and it combines substantive provisions with conflict of laws rules. The chapter describes the sphere of application of the UN Convention and its key provisions. Both conventions contain provisions overriding contractual restrictions on assignment. The chapter also examines the duties of the debtor and the conflict rules applicable to the priority of competing assignments.