As the country slowly winds its way out of the protracted recession, small-and medium-sized enterprises (SMEs), the backbone of the economy, are still struggling to obtain financing.
Despite very high liquidity, commercial banks are still reluctant to increase loans to many small companies, which need capital for expansion.
During the crisis, an alternative financing business-factoring-has slowly picked up steam and is now a significant financing avenue for SMEs.
Paiboon Sutuntivorakoon, a lawyer with PBS Law Limited and an adviser to the Thai Factors' Association, said the government was considering new laws that would further boost this important financing alternative. "A draft bill governing the factoring business is now being reviewed by the fiscal policy office of the Finance Ministry,"
