Identifying the Components of Financing through Factoring with a Risk Management Approach

Abstract

Objective: The aim of this study is to identify the components of financing through factoring with a risk management approach. Methodology: The study is applied in nature, cross-sectional in data collection, and descriptive-survey in its execution. The statistical population consisted of experts in financial management and accounting with relevant specializations and at least five years of executive experience in banks. The sampling method was purposive and chain sampling, with a sample size of 15 individuals. The data were analyzed using the qualitative method of thematic analysis. The validity of the research tool was ensured through thematic analysis, and reliability was confirmed using the test-retest method and dual coders. Findings: The results indicated the identification of 14 basic themes, 5 organizing themes, and 1 overarching theme for the model. The organizing themes include financial risk management, selection of factoring as a financing method, economic and financial factors, relationships with factoring companies, and interaction with business partners. Each of these themes emphasizes various processes essential to managing financial risks and decision-making in the use of factoring within organizations. Conclusion: The findings suggest that factoring, as a financing method, can contribute to improving liquidity and profitability when financial risks are managed effectively. Moreover, establishing effective relationships with factoring companies and setting terms of interaction with business partners are key factors for the successful implementation of this financing method.