This paper analyzes the operations of factoring companies in the Republic of Croatia and the world. It is shown how the financial market in general and the factoring markets are regulated. Furthermore, it is presented how risks faced by factoring companies reduce market exposure to risks and secure their receivables. The very beginnings of factoring companies through development and expansion are shown in order to gain perspective and more insight. Through certain statistical data, the performance indicators of factoring companies, the movement of their activities and financial reports for certain periods are presented and analyzed. All data from previous years is analyzed through comparable analysis and business flow. The process of factoring development from the very beginning is described, in which European traders hired agents known as factors to increase sales of goods in the unknown US market, all the way to a well-developed financial service. Factors Chain International (FCI) is also mentioned as the largest network of factoring companies in the world. It is shown that the European factoring market is the most developed in the world and that there are large discrepancies from country to country in the development of the factoring market. The aim of this paper is to determine the purpose and advantages of factoring financing through the comparable analysis of the history and current situation on the factoring market