Factoring market advanced more than 10 percent in 2016
Romania's factoring market advanced more than 10 percent in 2016 from the year before topping the 4 bn euro mark, shows a survey by the Romanian Factoring Association (ARF) sent on Wednesday.It is the third consecutive year of growth for the factoring market.
A gratifying element refers to the type of customers who sought this type of financing, namely small and medium-sized businesses. The share of this category increased to 40 percent of the total volume, from 29 percent in 2015. Although import factoring recorded the highest growth, of 15 percent, domestic factoring further accounted for the highest volume in absolute terms, with an advance of more than 300 million euro from 2015," said ARF chairman Bogdan Rosu.
The building sector holds the largest share of the activities that sought financing by factoring - with 19.4 percent of the total volume, but down 3.5 percent from 2015.
Export factoring was up 9 percent from 2015 to almost 650 million euros, with exports of metals / chemicals on the first spot with 36 percent of the total volume; however the figure was 17 percent down from 2015.
Import factoring increased 15 percent, "confirming that consumption growth was based on imports rather than on the national production capacity, which is quantitatively limited and lagging in terms of quality and technology."
The total number of customers who ran factoring operations in 2016 increased by 10 percent from 2015, while the number of commercial relations increased last year by 25 percent.