Constructing and Implementing a DSS to Help Evaluate Perceived Risk of Accounts Receivable

A factoring company is a means to provide working capital for small and medium sized companies that sell goods and/or services on a delayed- payment basis, by selling their accounts receivable to that factoring company. This paper describes the real life process of multicriteria model construction for Plaza Invest Factoring Co. (Brazil), using a decision-aid approach. A multi-attribute value function was developed, in order to measure the credit manager’s perceived risk generated by the transaction, thus helping him to decide if Plaza Invest should buy or not buy a given account receivable.