Factoring is a combination of the word "thrust" which means moving or transferring, and "accounts receivable" which means a bill of money. Based on the meaning of the word, then simple factoring means the transfer of receivables from the owner to another party. While the definition of factoring under Presidential Regulation No. 9 of 2009 is a financing activity in the form of short-term receivables from a company following the management of the receivables. A financing institution that performs factoring is one of the alternatives for business actors in overcoming funding problems. Companies can also take advantage of this agency to address sudden needs. However, the development of factoring in Indonesia is not going well. this is due to the lack of arrangements that specifically regulate the factoring activities and there are obstacles that burden the performance of financial institutions in performing factoring activities. To overcome these developmental obstacles hence required an effective solution. Solutions that can be undertaken include the establishment of legislation that regulates specific factoring activities and does not burden the company's performance in performing factoring activities
