04.05.2017-Postbank is a leader on the factoring service market again

Postbank is a leader on the factoring service market again

04.05.2017

The Bulgarian factoring market reached EUR 1.972 billion in 2016. The bank expects another 5 percent increase in 2017

Postbank has maintained its leadership position on the market of factoring services in terms of purchased receivables and has become factor No 1 in Bulgaria with a 37 percent market share of the total factoring service volume and with an over 68 percent share of export factoring (according to data of the financial institution). The bank has attracted new corporate clients and new debtors under its current clients’ deals, building a strong and profitable portfolio.

An analysis of Postbank‘s experts shows that factoring as a product providing short-term financing for the business plays a significant role in its successful development. The service helps management of risks mostly in export, which is of key importance to exporters, especially when they are operating on new markets and with new business partners. Companies trading on deferred payment terms bear significant risks, which are mitigated to a great extend through factoring. ‘Our country has an export-oriented economy and factoring is increasingly contributing to its development and trading Bulgarian companies’ products abroad. Thanks to factoring services they are receiving the most suitable working capital financing in order to close the production cycle and strengthen their positions,’ Postbank experts commented.

According to the bank’s analysis, in the recent years there is a sustainable uptake in the volume and the scope of factoring services and the Bulgarian market grew by 4 percent in 2016. Postbank’s experts expect an increase of another 5 percent in 2017. 2016 market data indicates that the domestic market represents almost 72 percent of factoring services, exports – for 27 percent and imports – for 1 percent. As at the end of 2016 the total turnover of factoring services of Postbank amounted to EUR 724 million and of the Bulgarian market – to EUR 1.972 billion.

Postbank provides recourse and non-recourse factoring services both to corporate clients and owners of small and medium companies, striving at offering the best conditions in order for companies to operate smoothly and follow an upward development trend.