The chairman of the board of Nordea Finance Latvia, Maris Skujins, predicts that the factoring portfolio in Latvia could reach around LVL 62 – 65 million (US$93m – 96m) in three years, instead of the present LVL32 million (US$48m).
Skujins believes that, at present, only Hanza Lizings and Unilizings offer factoring in the traditional sense. Nordea Finance Latvia has started offering the service. NORD/ LB Lizings is also about to add factoring to its range of products.
In Lithuania the factoring portfolio has reached LVL96 million and in Estonia LVL76 million.
There are several reasons why the Latvian factoring market is underdeveloped: the competition is low; businessmen are not informed enough and interest rates are high and the fixed rate is 7-10 per cent a year.
