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.

In 2008 for the first time in five years the factoring market dramatically slowed down. The factoring share in GDP declined from 1.56% in 2007 to 1.44% in 2008. In 2007 factor transferred demands were 1.7 times higher than the previous year; in 2008 the market went up only by 16.7% to reach 602 bln rubles (see drg.1). Positive increment throughout the year may be attributed to relatively successful factor operations in the first half of 2008.

The financial crisis made factors reconsider their risk-management systems and be more balanced and responsible in their credit policy.