Factoring or how healthy firms can obtain cash on short term

The Romanian factoring market, which is still taking shape, has a big growth potential, especially under the current circumstances, with companies having an increasingly hard time accessing financing from banks – this is the conclusion of the seminar entitled “Durable financing solutions in times of crisis – How to finance your business through factoring,” organised by Ziarul Financiar and Maltese group FIMBank. “Factoring addresses both companies that have loans taken out from banks, and those that, although their business is performing well, are still too fragile to be bankable. This crisis has obviously created opportunities, this is the time when factoring is coming back onto the market. When liquidity is high, anyone can get cheap loans from banks, even in the absence of guarantees,” said Margrith Lutschg Emmenegger, president of FIMBank. The Maltese will operate on the Romanian market based on the European financial passport, with Romanian advisory firm RomFactor as a local partner, which was created by one of the oldest entrepreneurs on the Romanian non-bank financial market, Dan Stoica. Factoring enables a company to obtain money in exchange for invoices that have been issued, but are not yet due. Additionally, factoring companies handle management of these receivables and can also insure against the risk of non-payment.