PRACTICE AND PROBLEMS OF REGULATING THE FACTORING SERVICES MARKET IN UKRAINE

Abstract

The article is devoted to the practice and problems of functioning and regulation of the factoring services market. In modern economic conditions, factoring can become an effective tool not only for optimizing the activity of business structures, but also for stimulating accelerated economic growth of the country. However, despite all its potential, efficiency and significant growth rates, it remains imperfectly regulated in the legislative sphere. In addition, factoring in Ukraine is not developed in its classical form, but rather this operation consists in the assignment of overdue financial debt. Given the current state of the market, the prospects for the development of the domestic segment of such services are large-scale. Therefore, the creation of an optimal model of the functioning of the factoring services market through the cooperation of all its participants and the regulator (NBU) will allow the market to develop, increase its potential, stimulate and expand business, and attract new strong players. The general concept of the development of the factoring market should be based on a new regulatory system, which will provide for: easy access to the market with minimal introductory conditions; presentation of a business plan as the main document of a financial company, which stimulates the optimization of activities, customer attraction and profit; expanding access to funding sources, which significantly scales the business of factoring companies; transparency and impeccable reputation of factoring companies, these are the ones that will be admitted to the market; protection of the rights of individuals; solvency, as the main requirement for the capital of factoring companies; quality reporting according to updated standards; regulatory requirements and intensity of business supervision; early detection and regulation of potential risks and professional judgment and assessment of comprehensive information related to the financial activities of the financial company; legal certainty, namely the establishment of clear and understandable legislative requirements, optimization of the system of regulatory and legal acts.