Scott Chen of Chailease Finance Co presents the latest analysis of Taiwan's factoring market
Market Performance and Supply Total factored volume for Taiwan in 2000 was approximately US$4.25bn, which compares with US$2.1bn in 1999, showing growth of just over 100%. Industry growth from 1998 to 1999 was 77.6%. The use of open account payment terms is well established for both international trade and domestic transactions. Together with the increase in export volume, this has created a hothouse for the factoring industry to develop and has encouraged many competitors to enter the market. Since traditional financial products are very competitive, more and more financial institutions, including insurance companies, commercial banks and leasing companies, are entering the Taiwanese factoring market. It is expected that international factoring turnover will grow by at least 15-18% this year. However, competition and price-cutting may result in a high rate of company failure.
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