Let’s start again!

As a drastic reduction has occurred in sources of financing available for companies since last autumn, a number of financing products subsidies by the government have been introduced to bring some life into this market. The New Hungary Current Asset Financing Program by MFB is one of these. It is intended to help SME-s which are suffering from a temporary lack of financing. The program has been expanded this year to accommodate the needs of agricultural enterprises as well. HUF 140 billion is available for financing preferential loans. As we have been told by dr István Tari, chairman of the board of Erste Faktor Zrt , the factoring market also suffered a decline of 10 percent in the first quarter of the year. At the same time, a restructuring of the factoring market has also taken place, with factoring enterprises owned by banks boosting their market share. The FMCG sector is highly sensitive to the reduction in purchasing power. It is hard to predict whether this will result in an increase or a decrease in demand for factoring services. A reduction in demand for FMCG products could even lead to a situation where demand for financing becomes substantial which can be satisfied using factoring services.