24 Martie 2010
Romanian factoring market, poised for 10-15% growth in 2010
Total assigned receivables to factoring companies could increase by 10-15% from 2009, when the market suffered a 27.8% slump to €1.3 billion, on significant drop in the number of debtors accepted by factoring companies, according to the estimates of Next Capital Factoring’s chief executive, Bogdan Rosu.
“According to data provided by the market institutions and IFG (International Factors Group), Romanian factoring industry was evaluated at €1.3 billion in 2009. Both banks and non-financial banking institutions had limited accepted clients portfolio. As for this year, we expect the market to see a 10-15%, because it would take a little longer to go back to 2008 hefty growth rates”, said Bogdan Rosu (photo).
In 2008, the local factoring market reached €1.8 billion, up 63% from a year earlier (see chart).
Source: Next Capital Factoring
However, Rosu says he’s optimistic on the performance of the market this year. “We expect banks to remain reluctant in approaching small and medium businesses, and factoring may be a valuable solution for them, which would lead to a growth in the local factoring industry”, said Rosu.
“As for Next Capital, we accepted only 25-30% of the companies that applied for factoring services”, said Rosu.
The number of companies in insolvency proceedings rose last year by 25% to 18,241 from 14,724 in 2008. And the value of dud payment instruments doubled in 2009 while their number even tripled compared to 2008.
The value of forged payment instruments registered at the Central Credit Register exceeded €4 billion last year, said the head of Next Capital Factoring.
In 2008, the local factoring market reached €1.8 billion, up 63% from a year earlier (see chart).
Source: Next Capital Factoring
However, Rosu says he’s optimistic on the performance of the market this year. “We expect banks to remain reluctant in approaching small and medium businesses, and factoring may be a valuable solution for them, which would lead to a growth in the local factoring industry”, said Rosu.
“As for Next Capital, we accepted only 25-30% of the companies that applied for factoring services”, said Rosu.
The number of companies in insolvency proceedings rose last year by 25% to 18,241 from 14,724 in 2008. And the value of dud payment instruments doubled in 2009 while their number even tripled compared to 2008.
The value of forged payment instruments registered at the Central Credit Register exceeded €4 billion last year, said the head of Next Capital Factoring.