Factoring is known like a Business of providing services activity that purchase of

financial assets more specifically Titles term. It is a fostering market mechanism

that allows the company sells their fostered credits, generated by its sales. In
short, It is a relationship between two companies, in which one can delivery to
another one a title term in exchange of monetary values at sight, removed values
of the transaction, in other words, the payment for the transaction.
The factoring is a company that besides provide credit analyses services it is
able to manage the payable and receivable accounts, take care about financial
advisory, risk studies and acquisition of rights resulting from the forward market
sales or service.
The factoring Company like a service provider has a higher cost to survive mainly
due high rates of taxes that is collected by the government. The capital of the
entrepreneur in him is the main item to be well managed so that the company can
maintain its turning of it back.
Our search shows the importance of an issue in our current financial market,
providing details of its performance and terms of service and its regulation.
The principal need is to know and understand how a factoring company works and how
both act in the financial market and the relationship with customers that are
seeking funding through some procedures charged by the factoring companies. But
our customers are not always selected because of the existence of the bank
bureaucracy and not achieve the desired profile by banks. It is a segment launched
in Brazil recently and is getting larger in our financial market.

The factoring occupy an area of promotion in the productive activity, in

particular the small and medium enterprises. The possibility of credit may be
offered by factoring can not be achieved by financial Institutions and to be
better utilized, must be regulated and disclosed. A proper regulation strengthens
the credibility and the service to the market.
There is not a specific legislation that regulates the business of factoring, such
as we have for the franchise companies. So the standards are the variety of the
natures, in commercial code, civil code, circular of the Central Bank and Federal
Revenue declaratory acts.
The general objective of the research is to understand how this came about
financial activity and how its performance and rules in the market is.
The method used for the development of this paper was a search, aiming to collect
data and information through books, magazines, Internet sources and the (ANFAC) -
NATIONAL ASSOCIATION OF FACTORING
The research was done based on respected authors such as Leite, LUIZ LEMOS slapper
of factoring in Brazil and DONINI, ANTONIO CARLOS who has a deeply knowledge in
the subject addressed.