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Value of Reverse Factoring under Make-to-Order Production Environments

Fehmi Tanrısever et al.

Foundations and Trends in Technology, Information and Operations Management2024https://doi.org/10.1561/0200000114-3article
AJG 1
Weight
0.30

What the paper says

Reverse factoring has received significant attention as a means for small and medium-sized firms to access capital. In this monograph, we explain the value creation mechanism of reverse factoring and derive the value of reverse factoring contracts for firms in make-to-order (MTO) production environments. Empirical and other theoretical work on reverse factoring exists in research literature, but our model constitutes the first analytic treatment of the problem for a pure MTO setting. We show how the value of reverse factoring results from and is conditioned by (1) the spread in deadweight external financing costs, (2) payment period extensions, (3) volatility in cash flows, (4) working capital policy, and (5) the risk-free interest rate. Thus, in addition to providing managerial insights on value reverse factoring contracts, our findings disclose an important relation of these elements to the broader macroeconomic context.

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https://doi.org/https://doi.org/10.1561/0200000114-3

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@article{fehmi2024,
  title        = {{Value of Reverse Factoring under Make-to-Order Production Environments}},
  author       = {Fehmi Tanrısever et al.},
  journal      = {Foundations and Trends in Technology, Information and Operations Management},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1561/0200000114-3},
}

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Value of Reverse Factoring under Make-to-Order Production Environments

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Evidence weight

0.30

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.