Factoring Sector in Turkey: General Overview and Evaluation of Factoring Companies' Financial Performance by Multi-Criteria Decision-Making Techniques

Hakan Yıldırım

Article Details

Factoring Sector in Turkey: General Overview and Evaluation of Factoring Companies' Financial Performance by Multi-Criteria Decision-Making Techniques

Authors:

Hakan Yıldırım

Publisher:

Ahmet Arif EREN

Main Topics:

Finans

Journal:

Politik Ekonomik Kuram Vol.8 Issue 2, pp.277-302

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001319927

pISSN:

2587-2567

Keywords:

Abstract:

 The factoring sector, which plays a key role in the sustainability of cash flows for businesses, particularly small and medium-sized enterprises SMEs, offers a range of financial services, most notably the conversion of receivables into cash before their due dates. Today, this sector is regarded as one of the most significant components of the non-bank financial segment. Thus, the condition and performance of the factoring industry are crucial for the sectors future and the overall functioning of the financial system. The purpose of this study; to evaluate the general situation of the factoring sector in Türkiye, its position within the global factoring sector, and the financial performance of companies operating in this sector. In line with this objective, initially, a general assessment of the sectors overall situation was made based on cumulative data related to the sector. Subsequently, the financial performance of companies operating in the sector was evaluated for the 2021-2022 period using six criteria identified for examination, weighted both through the equal weighting method and the CRITIC method, and assessed using the MAIRCA and MABAC methods. According to the analyses conducted, the rankings of financial performance remain unchanged using the MABAC and MAIRCA methods. However, when the criteria weighting method varies, partial changes in the rankings of factoring companies performance occur.

 The factoring sector, which plays a key role in the sustainability of cash flows for businesses, particularly small and medium-sized enterprises SMEs, offers a range of financial services, most notably the conversion of receivables into cash before their due dates. Today, this sector is regarded as one of the most significant components of the non-bank financial segment. Thus, the condition and performance of the factoring industry are crucial for the sectors future and the overall functioning of the financial system. The purpose of this study; to evaluate the general situation of the factoring sector in Türkiye, its position within the global factoring sector, and the financial performance of companies operating in this sector. In line with this objective, initially, a general assessment of the sectors overall situation was made based on cumulative data related to the sector. Subsequently, the financial performance of companies operating in the sector was evaluated for the 2021-2022 period using six criteria identified for examination, weighted both through the equal weighting method and the CRITIC method, and assessed using the MAIRCA and MABAC methods. According to the analyses conducted, the rankings of financial performance remain unchanged using the MABAC and MAIRCA methods. However, when the criteria weighting method varies, partial changes in the rankings of factoring companies performance occur.

 The factoring sector, which plays a key role in the sustainability of cash flows for businesses, particularly small and medium-sized enterprises SMEs, offers a range of financial services, most notably the conversion of receivables into cash before their due dates. Today, this sector is regarded as one of the most significant components of the non-bank financial segment. Thus, the condition and performance of the factoring industry are crucial for the sectors future and the overall functioning of the financial system. The purpose of this study; to evaluate the general situation of the factoring sector in Türkiye, its position within the global factoring sector, and the financial performance of companies operating in this sector. In line with this objective, initially, a general assessment of the sectors overall situation was made based on cumulative data related to the sector. Subsequently, the financial performance of companies operating in the sector was evaluated for the 2021-2022 period using six criteria identified for examination, weighted both through the equal weighting method and the CRITIC method, and assessed using the MAIRCA and MABAC methods. According to the analyses conducted, the rankings of financial performance remain unchanged using the MABAC and MAIRCA methods. However, when the criteria weighting method varies, partial changes in the rankings of factoring companies performance occur.

 Özellikle küçük ve orta ölçekli olmak üzere firmaların nakit akışlarının sürdürülebilirliği noktasında kilit bir rol oynayan faktoring sektörü; firmalara başta alacakların vadesinden önce nakde dönüşmesini sağlamak olmak üzere birçok finansal hizmet sunmaktadır. Günümüzde bu sektör, banka dışı finansal kesimin en önemli parçalarından biri olarak kabul edilmektedir. Dolayısıyla faktoring sektörünün durumu ve sergilemiş olduğu performans sektörün geleceği ve finansal sistemin genel işleyişi açısından önemlidir. Bu çalışmanın amacı; Türkiyede faktoring sektörünün genel durumunun, dünya faktoring sektörü içerisindeki konumunun ve bu sektörde faaliyet gösteren şirketlerin finansal performanslarının değerlendirilmesidir. Bu amaç doğrultusunda öncelikle sektöre ilişkin kümülatif veriler ile sektörün genel durumuna ilişkin genel bir değerlendirme yapılmıştır. Daha sonra sektörde faaliyet gösteren şirketlerin 2021-2022 döneminde finansal performanslarının incelenmesi için belirlenen altı kriter hem eşit ağırlık yöntemi hem de CRITIC yöntemleriyle ağırlıklandırılarak MAIRCA ve MABAC yöntemleriyle performans değerlendirmesi yapılmıştır. Yapılan analizlere göre, MABAC ve MAIRCA yöntemlerinin finansal performans sıralamaları değişmemektedir. Ancak kriter ağırlıklandırma yöntemi farklılaştığında faktoring şirketlerinin performans sıralamalarında kısmi değişimler yaşanmaktadır.

Article Details

Factoring Sector in Turkey: General Overview and Evaluation of Factoring Companies' Financial Performance by Multi-Criteria Decision-Making Techniques

Authors:

Hakan Yıldırım

Publisher:

Ahmet Arif EREN

Main Topics:

Finans

Journal:

Politik Ekonomik Kuram Vol.8 Issue 2, pp.277-302

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001319927

pISSN:

2587-2567

Factoring Companies

MAIRCA

MABAC

CRITIC

Multi-Criteria Decision-Making MethodsFaktoring Şirketleri

MAIRCA

MABAC

CRITIC

Çok Kriterli Karar Verme Yöntemleri

Issues

Article Details

Authors: Hakan Yıldırım

Publisher: Ahmet Arif EREN

Main Topics: Finans

Journal: Politik Ekonomik Kuram Vol.8 Issue 2, pp.277-302

Document Type: Article

Publication Date: 6/2024

Document Language: English

Document ID (Org No.): 2001319927

pISSN: 2587-2567

Issues

Authors:

Hakan Yıldırım

Publisher:

Ahmet Arif EREN

Main Topics:

Finans

Journal:

Politik Ekonomik Kuram Vol.8 Issue 2, pp.277-302

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001319927

pISSN:

2587-2567