Supporting factoring transactions in Brazil using reasoning maps: a language-based DSS for evaluating accounts receivable

  • Authors:
  • Gilberto Montibeller;Valerie Belton;Marcus Vinicius A. Lima

  • Affiliations:
  • Operational Research Group, London School of Economics, Houghton Street, London WC2A 2AE, England, UK;Dept. of Management Science, University of Strathclyde, Glasgow, Scotland, UK;Dept. of Business Administration, University of Southern Santa Catarina (UNISUL), Florianópolis-SC, Brazil

  • Venue:
  • Decision Support Systems
  • Year:
  • 2007

Quantified Score

Hi-index 0.00

Visualization

Abstract

Factoring companies are a widespread way of providing working capital to small enterprises in Brazil. This type of financial transaction has higher risks when performed in developing countries, due to unreliable financial information on firms, an unstable environment, and particular managerial practices. This paper describes a case study in which a language-based DSS was developed for a Brazilian factoring company to evaluate the perceived risk of buying accounts receivable; and discusses the suitability of different approaches to decision support for this type of decision in Brazil-which may be relevant for similar situations in other developing countries.