FACTORING TO REDUCE THE RISK OF INSOLVENCY IN THE MANAGEMENT OF RECEIVABLES OF THE ENTERPRISE

Introduction. The article is devoted to the study of the issue of using factoring to reduce the risk of insolvency in the management of the company's receivables. Ensuring a sufficient amount of financing for the activities of enterprises is an extremely important and urgent issue in the conditions of insolvency of counterparties. Purpose. The purpose of the study is to justify the feasibility of using factoring to reduce the risk of insolvency in the management of the enterprise's receivables. Materials and methods. The research materials include: scientific works of domestic authors whose field of scientific interests is liquidity, solvency of the enterprise, management of cash flows, the risk of its insolvency and the use of factoring services during the management of the receivables of the enterprise. During the research, the following scientific methods were applied: theoretical generalization (to characterize the company's liquidity indicators in the context of insolvency risk); formalization and synthesis (for the development of a methodical approach to assessing the readiness of an enterprise to use factoring to reduce the risk of insolvency); logical generalization (formulation of conclusions). Results. A methodical approach to assessing the company's readiness to use factoring to reduce the risk of insolvency is proposed and consists of four stages: At the first stage, an assessment of the company's liquidity is carried out using the coefficients of general and quick liquidity. The result is a determination of the sufficiency or lack of cash to cover receivables and short-term liabilities. At the second stage, the characteristics of the company's receivables are provided. A SWOT analysis is used to identify strengths and weaknesses, opportunities and threats in accounts receivable management. The third stage includes the application of financial criteria for choosing a factoring company or bank. Factoring costs, terms of contracts, amounts of financing and the availability of security to reduce the risk of insolvency are analyzed. At the fourth stage, using the matrix method, the enterprise is classified according to the level of readiness for the introduction of factoring (high, medium, low). Based on this, measures are determined to improve the management of receivables and ensure solvency. This approach makes it possible to systematically assess the readiness of the enterprise to use factoring and to determine effective measures to reduce the risks of insolvency. Discussion. During future scientific research, it is proposed to pay special attention to the issue of building scales for the indicator of the level of readiness of the enterprise to use factoring to reduce the risk of insolvency, which will contribute to the improvement of the financial support of enterprises.