Factoring as a source of external financing of enterprises in Poland

External capital is an additional but a very important source of an entity funding and development. An important source of a short-term external financing is factoring. Due to the difficulties in credit obtaining, factoring turns out to be the only available source of working capital obtaining. It is the most flexible and effective financial instrument, providing not only liquidity, but also reducing the risk associated with the sale and receivables. The article presents the conception of factoring as a form of foreign external financing. It is compared the selected external financing sources available to entrepreneurs, ie. factoring credit and leasing rotary and it is presented the conclusions resulting from this comparison. It is outlined the scale of factoring in Poland. The article uses the method of analysis, the method of literature studies (it is used the national literature, including scientific article and legal acts as well as Internet sources of Polish Factors Association).