The strength of every company is primarily manifested in ensuring smooth operations and regular performance of all its obligations. Growing competition and significant changes in market conditions have led to the fact that companies increasingly resort to the possibility of delaying payment as a kind of customer credit for sold product and services.Influenced by various factors, customers tend to late with payment of their obligations, which can cause business instability and liquidity problems for suppliers . In modern business, as one of the solutions for such problems, companies find factoring as a short-term alternative financing model. Factoring is a form of financial and legal business in which the factoring company buys the client's claims through an agreement on factoring and cession, providing them with an immediate flow of funds for the uninterrupted further functioning of the business. In the first part of this work, the aim is through a theoretical approach explain and define the concept of factring work and its key features, determine its types and the legislative framework associated with it. The aim of the second part of this worik is to show the flow and functioning of the business withih the factoring company through the accounting treatment of the process of the several forms of factoring.