Factoring services are in high demand
Since the global financial crisis there been an increased awareness in factoring products and their ability to finance domestic and international trade, according to Malta’s FimBank.
In its meeting held last week, FimBank and its international factoring joint ventures, including Egypt Factors, Levant Factors, India Factoring, FactorRus, BrasilFactors, Mena Factors, RomFactor, and Med Factors, came together to discuss corporate strategy and opportunities for growth.
FimBank president Margrith Lütschg-Emmenegger says: “Specialist banks and factoring houses are taking advantage of this increased interest in factoring by promoting the importance of this alternative financial solution and its advantages for both domestic and export-oriented businesses.”
She further explains that many businesses are starting to factor their invoices to pay bills, take advantage of early payment discounts, increase sales and fund their business growth.
“Prior to the crisis, factoring services, particularly in Europe, tended to be more focused on the finance aspect. The reality is that more customers are now viewing factoring from a different perspective. They see the service as offering a potential means of managing risks and providing cash management solutions, over and above the funding aspect. This trend is growing, particularly for exports from emerging markets to the more developed ones,” Lütschg-Emmenegger adds.
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