Erste Faktor improves its market position

Although in the first quarter the factoring market contracted, Erste Faktor Zrt. managed to expand significantly (by 40 percent in the second quarter; in the same period the market contracted by 10 percent). We spoke with CEO Dr István Tari about the reasons. According to the CEO, for companies in the retail sector factoring is one of the most important financing methods. Both banks and companies should realise the importance of this new form of financing. Increased financing costs and a narrowing profit margin will trap companies, unless they start rationalising their costs and improving their efficiency. Erste Faktor is committed to serve the financing and claims management needs of SMEs, at the same time also focusing on increasing the company’s market share and promoting factoring. In the CEO’s opinion, 2009 is going to be a watershed; he expects a robust growth from bank-owned factoring companies.