WFY’26: Kosovo’s factoring market enters multi-provider era as competition expands

Kosovo’s factoring market is entering a new phase as competition broadens beyond the single-provider structure that characterised the sector for more than a decade. In this country report, Fatos Ibrahimi, Head of Corporate Products and Solutions, Corporate Banking Department at Raiffeisen Bank Kosovo JSC, examines how new bank and fintech participation, SME financing needs and a developing legal framework are beginning to reshape the country’s receivables finance market.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a market where factoring remains relatively underdeveloped but is becoming more competitive. It also considers the importance of receivables-based finance for SMEs facing high collateral requirements, the development of reverse factoring and the structural constraints that continue to limit non-recourse activity.

Below is an excerpt from his article.

Still not largely developed, Kosovo’s factoring market is entering a new phase. Raiffeisen Bank Kosovo (RBKO) introduced factoring in 2012 and for more than a decade was the sole provider of factoring services in the country. However the number of market participants increased through Zvilo Factor LLC, a UK head quartered fintech, that holds a licensed factoring subsidiary in Kosovo and through two additional financial institutions, NLB & BKT. These interventions suggest that the market is beginning to grow more strongly.

The last confirmed total factoring volume figure was for the year 2020 at EUR 34.2m, representing growth of 61 per cent compared to 2019, as reported in the FCI Annual Review 2021. The market has continued to develop since then, with GDP penetration estimated to have grown from 0.44 per cent in 2020 to approximately 0.9–1.0 per cent in 2025. Total 2025 market volume has not yet been confirmed – Kosovo has no official factoring statistics reported to the regulator – and any market-wide estimate should be treated with caution pending direct confirmation from market participants.

Kosovo’s private sector is built almost entirely on small and medium-sized enterprises, representing 99.8 per cent of registered enterprises and generating close to 75 per cent of employment. Businesses in Kosovo typically operate on payment terms of 30 to 90 days. High collateral requirements from banks are a significant barrier to SME financing, making factoring, which relies on receivables rather than fixed collateral, a structurally attractive alternative for this segment.

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To read the whole article and 50 other specialist articles and country market reviews, order World Factoring Yearbook 2026 here.