Over the past year European commercial banks have increased the provision of factoring services in almost the half, bringing the total share of this service in the overall package provided to clients to the level of 18%.
This opinion was expressed by Paul Krapivin, the first deputy chairman of the “Contract” bank during the roundtable discussion “What banks are ready to do for small and medium business in 2015?” that was held on February 6.
According to Mr. Krapivin this banking tool in Ukraine in today conditions is the most attractive for small and medium enterprises (SMEs) due to collateral-free form of such instrument.
“Representatives of SMEs in Ukraine very clearly evaluate debt instruments with collateral: it is not quite a right option to risk your “close to the body” property, – said Mr. Krapivin. – In this regard, collateral-free instruments of crediting, such as overdraft and factoring are very interesting both for SMEs and commercial banks. “
“SME sector is very sensitive to price increases. At the same time SMEs face the “wash out” of working capital. Replenishment of these funds is one of the main reasons for the SME representatives to appeal to banks for financing” – said Mr. Krapivin.