Magazine: CIB FaktorFactoring

CIB FaktorFactoring: the crisis is overAfter the contraction in 2010, the domestic factoring market started expanding again in 2011.

Since there have not been major changes on the credit market, many stable firms decide to sell their claims. Formerly loans were cheaper but because of necessary coverage, the registering of mortgages and high interest rates factoring is increasingly competitive. Gaszton Gál, the CEO of CIB Faktor Zrt. told our magazine that finally this year has not been characterised by consolidation as a stable growth process has commenced. After long years, partners learned that factoring is a stable, calculable way of financing that is also available when loans are uncertain or not available. The CEO pointed out that most of their partners are not companies trying to get rid of doubtful claims, on the contrary, CIB Faktor Zrt. provides current asset financing services to firms that are working well, have a high and calculable turnover and a large number of buyers. Factoring is the best financing solution for companies that sell goods in high value and are guaranteed to receive their money, the only question is when they will receive it. One of CIB Faktor Zrt.’s rapidly expanding products is non-recourse factoring: in this case if the buyer does not pay, the consequences are not shifted to the partner – the factoring company shares the risk with external credit insurance companies or they collect the claim together. Another new product is maturity factoring: this product can help in achieving a balanced cash flow if the supplier has business relations with many small partners.