Emita Wahyu Astami(1*)

(1) STIE "YO"
(*) Corresponding Author


Factoring is the purchases of a firm’s accounts receivables (the client) by another firm (the factor) for a discount fee. This paper attempts to discuss the benefit of factoring receivables, steps taken to avoid serious problems that can arise from factoring, and reporting the sales of receivables.
Being successful in the future, a company will probably need to sell overseas and being global, therefore it needs to work with an international factoring company. By using the services provided by a factor, the client gains a partner who can provide administration, working capital enhancement, business experience, and overall guidance in selling products abroad. Factors can be considered to become the receivable management entities therefore, management can focus on developing, producing, and selling products.
However, before entering into a factoring agreement, a firm need to consider and take steps to avoid risks. Factoring programs work only if both factors and clients pay adequate attention to preventing problems before they arise.
Finally, both the client and the factor need to report factoring receivables based on Statement on Financial Accounting Standards (PSAK) No. 43. In a factoring, receivables are sold on either a without recourse or a with recourse basis.

Full Text:



Ayers, H. Donald, dan Kincaid, JD, J. Timothy. 1996. Selling accounts recei-vable. Healthcare Financial management. May: 50-55.

Bland, Leslie. 1997. Invoice finance v. bank overdraft. The Secured Lender. January/ February:62-64.

Boer, Germain. 1999. How to help operating people use working capital wisely: Managing the cash gap. Journal of Accountancy. October:27-32.

Carmichael, S. Richard, 1998. Entrepreneurial lenders and factors shape the industry. The Secured Lender. November/December: 46-51.

Chasteen, Lanny G., Flahtery, Richard E., dan O‟Connor, Melvin C., 1998. Intermediate Accounting. 6th edition. Irwin Mc Graw Hill.

Darmadji, Tjiptono. 1999. Laporan khusus. Infobank. Desember (244):53.

Dresser, Guy. 1997. Factoring: The way to cash. Director (50). January: 48-55. Editorial News. 1996. Emerging markets expect factoring boom. Management Accounting. November:7.

Fast Forward. 1998. Are you managing your cash flow? Director. June: 30-32.

Gutloff, Karen, 1998. Five alternative ways to finance your business. Black Enterprise. March: 81-85. Ikatan Akuntan Indonesia, 1999. PSAK No. 43. Jakarta. Salemba Empat.

Kamus, 1996. Kamus: Anjak Piutang. Info-bank. Februari (194):103.

Kieso, E. Donald, Weygandt, J. Jerry. 1998. Intermediate Accounting. 9th. Edition. New York. John Wiley & Sons, Inc.

Peck, W. Richard. 1997. Cash flow: Money to make your factory grow. Business Credit. May: 16-17.

Plyer, R. Eugene. 1996. International fac-toring: alternative trade financial tool. The Secured Lender. July/August: 74-76.

Sandak, Jerry. 1998. Factoring: An effective way to downsize and outsource in the „90s. Business Credit. May: 45-46.

Siska, G. Thomas. 1997. For small firms, credit and collections can now be done the old-fashioned way-by factoring. Business Credit. March: 6-7.

Suparyadi, Nugroho.1999. Perkembangan dan kendala modal ventura. Jurnal Ekonomi Manajemen dan Akuntansi (JEMA). Edisi18/06/1999: 9-11.

Tarter, A. Kenley. 1997. International fac-toring: an effective financial strategy. Business America. October: 40-42.

Tyler, Geoff. 1997. Highest common factor. Management Accounting. September: 46-48.

Wylde, Edward. 1997. The legal basis of recei-vables financing in UK. The Secured Len-der. May/June: 34 dan 84.

Article Metrics

Abstract views : 2571 | views : 10418


  • There are currently no refbacks.

Copyright (c) 2018 Journal of Indonesian Economy and Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal of Indonesian Economy and Business


Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism


Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees


Author Pack
Submission Form & Manuscript Template



Reviewer Guidelines
Reviewer Acknowledgement



General Search
Author index
Title index



The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics