MODEL FOR THE ASSESSMENT OF THE CLIENTS OF THE FINANCIAL INSTITUTIONS, BENEFICIARIES OF THE FACTORING FINANCING

Daniela BUMBAC, Lilian HÎNCU* Universitatea de Stat din Moldova *Academia de Studii Economice a Moldovei

Abstract

The banking, microfinance and leasing sector is the main source of financing for business in Moldova. The microfinance and leasing sectors, despite growth, play a limited role in providing business funds and are not yet a viable alternative to bank loans. The financing decision of the potential client is quite complex. In order to assess the client's creditworthiness, financial institutions use econometric valuation models to group customers into three broad categories: solvent clients, insolvent clients, and customers placed in the uncertainty area. From national practice, it is possible to establish with certainty that commercial banks have developed models for assessing potential clients to apply for bank loans. For factoring financing, evaluation models are very limited. The need to develop an econometric model of valuation of the potential client asking for factoring is an important and very current one. Keywords: creditworthiness, financing decision, factoring, multiple linear regression.