BRD factoring business drops by over 10% in Romania

BRD, the third largest bank in Romania by assets, managed EUR 822 million worth of factoring operations last year, down 10.7% year-on-year. The bank's market share in this segment dropped from 25% to 20%. The local factoring market rose by 10% last year, exceeding EUR 4 billion. Factoring is a financial product by which a company "sells" the invoices that it needs to collect to a so-called factor, which is, usually, a bank. In exchange, the company gets a part of the revenues. In 2015, BRD recorded factoring activities of EUR 921 million, at a market share of 25%. The bank had about 700 customers on its factoring segment last year. Most of them were active in the consumer goods, metallurgy, machinery and equipment sectors. The factoring market includes both banks, as well as companies specialized in the accounting and administration of invoices. editor@romania-insider.com