An Information System for Automation of Factoring Operations at a Bank

In the following paper, is described the basic principles of the Factoring Automation System (FAS) that accompanies the factoring process. The FAS permits to conduct factoring operations in automatic mode, which increases the rate of funding and eliminates the majority of undesirable costs associated with the documents transportation thanks to the introduction of electronic document management. The main tasks of the FAS are to collect information about invoices and waybills by supplier and to provide special software for the issue of financing according to collected documents. The following study is designed to describe the automation system of the interrelation “debtor-factor-vendor”, developed by the author, that helps to increase the financial flows and, consequently, the revenue of all parties to the agreement. This particular topical area was chosen due to the fact that the author works in a Moscow bank specialized in factoring using Factoring Automation System (FAS) that besides invokes EDI factoring. The system that performs the factor’s (financial agent’s) tasks should have the opportunity to receive the verification of debts from the debtor, buy-back it from the vendor, and deduct the fee for the financial services rendered. The goal is to computerize the factoring process in the bank in order to increase money flows and, thus, the amount of revenue. Accordingly, on the basis of the topical area analysis, it is necessary to develop FAS (Factoring Automation System) that will permit to update the verification of the clients online and to transfer money. Furthermore, the system should be flexible enough to respond immediately various changes like new (related) business objectives.