Romania’s factoring market increased by 12% in the first six months of this year, reaching EUR 2 billion, according to the Romanian Factoring Association (ARF).

The growth was consistent, but could have been 5-6% higher if the economy benefitted from higher investments and not only increased consumption, said the AFR president Bogdan Rosu.

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.

The domestic factoring operations rose by over 14% year-on-year. The IT&C segment recorded the best evolution, increasing from EUR 106 million in 2015 to almost EUR 290 million in 2016, said Rosu. The export factoring increased by 3.5% year-on-year.

The factoring market includes both banks, as well as companies specialized in accounting and administration of invoices.

editor@romania-insider.com