Determinators of factoring in receivable management and an application to SMS's in Eskisehir

The reel sectors, particularly The Small and Medium Enterprises (SMEs) havegained importance in Turkish Economy since the beginning of 1980s when the economyconverted to free market economy. The SMEs are the key components of the economic andsocial system for both creating value added and obtaining employment.Being a vital for a country?s economy, the SMEs face a large number of problemssuch as financing. Factoring is a kind of state-of-the-art financial techniques in order to solvethe financial problems of the SMEs. In addition, it provides firms of such opportunities ascost saving, penetration to new markets and higher growth rates.This study aims to investigate factoring practices in the SMEs as an alternativefinancial tool to deal with financial problems. The survey was applied in SMEs in Eskisehirregion. The study shows that sufficient promotion and legal legislations increase theutilization of factoring by SMEs.