While small- and medium-sized enterprises (SMEs) still prefer bank loans to regulate cash flow, companies are increasingly turning to alternative methods. Once alternative, factoring has been growing in popularity.
The Czech factoring market has grown by some 20% a year over the past three years and the Association of Factoring Companies puts the volume of factoring services at Kc84bn last year.
D.S. Factoring, the receivables administration specialist, has announced increased revenues totalling CZK1.4 bn (Ђ47m) in 2004, a year-on-year increase of 60 per cent. The company processed almost 35,000 transactions in this period.
Factoring companies are not new to the Czech market, having been active since the early '90s. However, experts say that use of this service has not yet reached its full potential.
The Czech National Bank (CNB) and the Czech Statistical Office (CSU) are teaming up to develop a new monitoring system with the purpose of making the small- and medium-sized enterprise sector more transparent to banks.
D.S.Factoring raised total revenues to record Kc1.4bn last year, up 60 % from 2003, as the company in the year processed nearly 35,000 items for its clients, according to director Pavel Strasak.
In 2004, Ceska Sporitelna provided new loans for small- and medium-sized enterprises (SMEs) totaling CZK 20.2 bn. The overall portfolio of credits granted to SMEs amounted to CZK 36.5 bn as of the end of last year.
Total turnover of Factoring Ceskй Sporitelny increased by almost 40 per cent last year and reached Kc22.5 bn., with a market share over 27 per cent and as a result became a market leader among companies belonging to the Association of Factoring C
Export Guarantee and Insurance Corporation (EGAP) has founded a daughter company Commercial Credit Innsurance EGAP that will take over the commercial part of EGAP’s business activities.
