This article aims to analyze an alternative way of financing through factoring. <...> Factoring as an alternative source of financing in the Czech Republic is not much used and this is due to the fact that businesses are not aware of this method of financing. <...> The general characteristics of factoring, including its main conceptual principles are presented. <...> The factoring services in general and the criteria, on which the factoring classification is based, are considered. <...> The factoring course during the last seven years, alongside with the determination of the volume of factoring during certain periods of time, is shown. <...> These receivables arise from the sale of goods or services. <...> The purchase of receivables is carried out by a specialized factoring company or with a factor usually without a regression (a recourse to a supplier if the customer does not pay). <...> Factoring is the purchase of receivables carried out by a factor satisfying the following conditions. 1. <...> The maturity of the receivables is no longer than 180 days (this condition is likely to vary depending on a factor). 2. <...> The assignment of receivables to another lender is not excluded. <...> The Course of the Factoring Case After checking the credit worthiness of the suppliers and the customers, there will be an application of the receivables factoring between the factoring company and the supplier and it will be followed by a subsequent contract of factoring. <...> On the contrary, the factoring company undertakes to provide the advances in an agreed amount for the assigned claims to the supplier immediately after receipt of the invoices and then to take care of their payment [4]. <...> The next step takes place between the supplier and the customer; this step is the delivery of the goods and the subsequent issuance of the invoice by the customer. <...> In the case of raising an invoice by the customer, the next step against the supplier may take place; that step is the assignment or the assignment of the receivables from a supplier to a factoring company (factor). <...> The pre-financing by a factoring company towards the customer occurs after the assignment of the receivables. <...> The last step is the receivable payment or the guarantee payment by the factoring company to suppliers [5]. 49 ISSN 2073-5537. <...> Factoring Breakdown The factoring may be classified according to several criteria: by taking over the credit risk factor, the number of the agreed buyouts, the method of assignment of receivables, by the seat of suppliers and customers. <...> The first part is theoretical, which discusses factoring in general and it records the individual factoring operations; it also shows the breakdown <...>