Factoring and its use in domestic and foreign trade in the Czech Republic

This article aims to analyze an alternative way of financing through factoring. Factoring as an alternative source of financing in the Czech Republic is not much used and this is due to the fact that businesses are not aware of this method of financing. The general characteristics of factoring, including its main conceptual principles are presented. The ways of factoring usage, supported by the examples from practice, are described. The factoring services in general and the criteria, on which the factoring classification is based, are considered. Two types of factoring in the Czech Republic both at the domestic and foreign markets are analyzed. The factoring course during the last seven years, alongside with the determination of the volume of factoring during certain periods of time, is shown.