This study is to present factoring as a financing technique and to search its contributions to the bankiiig industry. For this reason a detailed research is done by analyzing the implementation of factoring all around the world. In addition, a real life case is studied in order to show that firms which have working capital deficits can overcome their problems when they cooperate with factoring firms and banks together. FACTORING IS A COMPLEMENT TO MODERN BANKING SYSTEM : The firm's (which incurred the problem of working capital in the real life case) financial structure and ongoing projects were analyzed in terms of liquidity, profitability, and eff iciency. Finally, it is concluded that the utilization of factoring only, may not be sufficient to solve the financial problems of the firms but instead it is a complemantary to the banking system as a valuable instrument.