Network Factoring – Performing Product
in Financial Management of International Transactions
Most international trading transactions having as an aim the commodity flow, involve the financial flows that close the money-commodity/money cycle.
In other words, the manufacturer who spends money amounts in order to manufacture and turn to good account certain products, cashes their equivalent value as profit. The flow of commodity can be directly transferred from manufacturer to end user or from manufacturer to a series of economic agents and finally to consumer. The existence of more chain links within the flow of commodity; from manufacturer to consumer, causes delivery delays and price growth (each economic agent adds a profit).
The financial management of this flow supposes to resorting to special financing forms of transactions or to using certain payment instruments as: risk, minimum time and cost. One of the specific form of financing the international transactions is factoring.