Banks Stopped Providing Credit To Businesses
When banks stopped providing credit to businesses, a credit auxiliary organizations that stood out was precisely the financial factoring, after bottoming capitalized and managed to go into rebuilding, the hundred companies were only 20, which were well positioned, maintained healthy controls and practices in the purchase of debt.
According to the Ministry of Finance have now registered 33 factoring companies, of which nine have been revoked, three are operated by the NBSC, three have been merged financial groups and the rest are in operation.
So far fewer than 5,000 companies have a factoring service, a very small number compared to the nearly three million companies in the country. Currently, the annual volume of financing is just one fifth of the 22,000 million dollars that came to have the sector.
But the future is promising as it has a very large potential market made up are not now subject to bank credit. The great advantage of this type of financing is passive and does not generate the process, once they are approved the first contracts, become revolving lines of credit according to the needs of each individual customer with which documents can be deducted it deems necessary or its entire portfolio of accounts receivable.
Factoring has become popular worldwide as a desirable method that allows the seller to cash before maturity, provides a high degree of efficiency in the company since at all times is an increase of liquid assets.
It is estimated that overall and generate sales by $ 415,000 million dollars and most qualify for liquidity through its accounts receivable. Contrary to what happens with traditional financing, factoring specializes in small and medium firms that usually have a weak market position, high debt levels and did not have much capital.
The method is comprehensive, and presented 14 common types of factoring, which allows its use in accordance with the characteristics of the company, is an ideal solution that allows the company, if used early, get rid of accounting work and legal relationship with the Accounts Receivable.
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