Factoring Research by Expert RA
The volume of the Russian factoring market reduced by 40% and amounted to RUB 361 billion on the results of 2009, which was caused by decline in demand on the part of the customers. Late in 2008 and early in 2009, reduction in the customer base was caused by tightening of the requirements imposed on customers and debtors by the factors. Suppliers resorted to factoring as to a life-line (then, they were not discouraged even by very high rates); but factoring agents oven refused financing even to their old customers. Now, suppliers, remembering the difficulties in arranging for factoring services during the crisis, have re-oriented their funding policy to their own funds.
In addition, worsening of debtors' payment discipline forced many suppliers to shift from deferred payments to prepayment. But abandonment of deferred payments is tantamount to abandonment of factoring. Non-recourse factoring accounts for only 11.5% of the market on the results of 2009, and in most cases the burden of the debtors' non-payments is passed on to the suppliers.
A trend towards product segmentation of the markets manifested itself in a most obvious way in 2009. One pole of the market is occupied with factoring agents, financing the suppliers of basic goods to retail giants operating on the nation-wide level. High level of price competition is characteristic of this segment, largely for those customers who already use factoring. At the other pole of the market are factoring agents representing products with high added value, without any tight restrictions as regards the branches of economy. Now, this segment of the market is represented by a limited body of actors, mostly specialized companies, but it is the most promising and profitable one.
According to Expert RA, the growth of the factoring market in 2010 will be equal to 25- 35% and will be based on outrunning growth of non-recourse factoring. The volume of the market will be equal in 2010 to approximately RUB 450-490 billion. In search of new customers, factoring agents will turn to more intensive development of non-recourse factoring, which will be the growth driver in 2010.
Figures 4.
In 2009, the factoring market reduced by 40%
| Title | Summary |
| The Russian factoring market in 2008: You need change to survive | Euphoric extensive growth at the factoring market is history. Factors
need change to survive under present circumstances - by way of modifying
risk-management and business-processes.
See more |
| Factoring: the first half of 2008 | To spite records and elements: problems in financial sector did not
prevent the Russian factoring market from growing by 82.1% in the first half of
2008 against similar period of 2007. Factor-transferred financial demands
within the first half of 2008 amounted to 345.8 bln rubles. Speedy turnover of
factoring business helped to adapt policy of placing and attracting resources
to new conditions without any deceleration.
See more |
| Business handbook Factoring in Russia | Expert RA Rating Agency prepared the second edition of business handbook
Factoring in Russia. According to results of the research, conducted by the
Agency, Russian factoring market kept on rapidly developing in 2005. According
to Expert RA analysts, total volume of the Russian factoring market is about
USD 5.5-5.8 billion. Thus, market gain for 2005 was 80-90%. The share of
factoring transactions in GDP amounted to 0.9%
See more |
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