New loans in the Széchenyi Card Programme

The economic crisis changed the Hungarian financing market; increasing risks forced financial institutions to survey the financial conditions of debtors more thoroughly. Enterprises with a weaker creditworthiness were steered to factoring services – informs Gaszton Gál, the CEO of CIB Faktor Zrt. • T.M.: – Is the financial crisis over? Do you see the signs of growth? – Well-working enterprises are in a more favourable position now. Other actors on the market were unable to hold on – suppliers of these companies have not written off their losses yet. • T.M.: – The number of companies with doubtful claims grew. Are they the ones who try factoring services? – Factoring is the best financing solution for companies with a high turnover that will surely receive their money, the only question is when. The suppliers of large retail chains belong to this group. By using factoring, they will get their claims in 1-2 days instead of 60-90. • T.M.: – This period is now limited by law: it cannot be longer than 30 days. – It is true, but it is doubtful when this measure will take effect. By using the synergies of CIB Group our company often gives offers together with CIB Bank if a company suffers from a lack of current assets. • T.M.: – Despite these facts, factoring did not really prosper last year. What about this year? – Domestic factoring companies saw their turnover decline by 11 percent last year. This year the market expanded by nearly 10 percent, but the number of active customers increased only moderately. However, the duration period of claims bought decreased. For a further development of the factoring market a modification in the legislative background is inevitable.