Factoring is a professional credit management tool used by companies who pay attention to how they conduct their relations with customers and plan the resulting cash flows.
It is not a "competitor" of bank loans but offers a financial component which may be used as a complement to other available sources of financing in order to diversify the company's liabilities. A modern bank sees use of Factoring among its clientele as a positive sign.
According to a survey of demand for Factoring conducted among Italian companies, banks are one of the principal channels through which companies find out about Factoring.
Banks also promote many Factoring initiatives in Italy by setting up specialised Factoring companies and by offering Factoring services themselves.
Factoring is an important tool for consolidating a bank's relationship with its customers, as it encourages formation of a long-lasting relationship in which the bank works alongside the enterprise in administration, organisation and financing of credit management.