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. The leading companies took some anti-crisis steps even in the end of 2007 by diversifying sources of financing and reconsidering risk-management demands, which resulted in speedy business development.

Get ready for landing: in the second half of 2008 the market development results should be less effective. Factors have been more accurate in assessing risks they take. Cost of funding went up. Economic situation turned for the worse. Traditional factoring seasonal fluctuation (1/3 of the annual volume is covered in the first half of the year, 2/3 - in the second) would change from 1:2 to 1:1. The annual volume of factor transferred funds in 2008 would amount to 680-700 bln rubles.

Regional diversification, promising products: the factoring market negative trends in the first half of the year were not followed by narrowing the scope of geography and products. Share of Moscow and Saint-Petersburg went down to 58.2% (the first half of 2007 - 61.6%), share of other regions went up. Share of internal factoring without regress went up from 12.7% to 16.5% comparing to 2007. Reverse factoring (company disclosed information) amounted to 4.9 bln rubles (1.6% of the market).

The market makes its choice: Association of factoring companies set in July 2007 plans to start active interaction with the market players in the second half of the year. The Association would launch its site in the autumn 2008 to inform factors of the Association and its rules, as well as of the market situation. Factors would receive invitations to join the Association. Expert RA rating agency is ready to actively cooperate with the Association by way of information and analytic support of the Association activity.