2004年-世界发展银行全球_Financing_Small_and_Medium-Size____________Enterprises_with_Factoring__Global_Growth_and_its_Potential____________in_Eastern_Europe_50页_788kb

Financing Small and Medium-size Enterprises with Factoring: Global Growth and Its Potential in Eastern Europe

Core Content

Factoring is a financial tool that provides short-term working capital to small and medium-sized enterprises (SMEs) and corporations by purchasing their accounts receivable. It has experienced significant global growth, reaching a volume of 760 billion euro in 2003, up from 1998. The report focuses on the potential of factoring in the EU 8 (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic, Slovenia) and other emerging markets, particularly Eastern Europe.

Main Advantages of Factoring

• Asset-based financing: Credit is based on the value of the borrower's receivables, not on the borrower's overall creditworthiness.
• Service bundling: Factoring includes not only financing but also credit assessment and collections.
• Risk transfer: The factor assumes the risk of non-payment, making it particularly useful for high-risk, informationally opaque borrowers.
• Bankruptcy protection: In countries with weak legal systems, factored receivables are removed from the borrower's bankruptcy estate, reducing the risk for the factor.

Types of Factoring

• Non-recourse factoring: The factor assumes all or most of the default risk. Common in developed markets (e.g., Italy, U.S.).
• Recourse factoring: The factor has a claim against the borrower if the receivables default. More common in emerging markets.
• Notification vs. non-notification: Notification factoring involves informing the customer that their account has been sold to a factor, while non-notification does not.

Global Growth Trends

• The global volume of factoring grew by 67% between 1998 and 2003.
• In EU 8, factoring grew by 434% between 1998 and 2003, with some countries showing even higher growth rates (e.g., Slovenia: 1114.3%, Czech Republic: 301.7%).
• Poland had a significant increase in factoring, growing by 323.6%.
• In developed countries, factoring is more commonly used as a primary source of working capital, especially in sectors like manufacturing and services.

Key Barriers to Factoring Growth

• Information infrastructure: Weak data systems make it difficult to assess the creditworthiness of customers.
• Legal and judicial environment: Inadequate commercial laws and contract enforcement hinder the development of factoring.
• Tax and regulatory environment: Unfavorable regulations can limit the growth of the factoring industry.

Role of Factoring in the EU 8

• The EU 8 countries are experiencing rapid growth in factoring, which is seen as a promising tool for SME financing.
• These countries have weaker legal systems and less developed information infrastructure, which makes factoring more attractive as a financing option.
• The report suggests that improving the legal and regulatory environment can further accelerate the growth of the factoring industry in these countries.

Comparative Analysis

• EU 15 vs. EU 8: The EU 15 countries have more mature factoring markets, while the EU 8 countries are catching up rapidly.
• EU 8 domestic vs. international factoring: Domestic factoring dominates in the EU 8, with international factoring playing a smaller but growing role.
• Factoring as a percentage of GDP: In the EU 8, factoring as a percentage of GDP is relatively low, but it is growing, indicating increasing importance.

Recommendations

• Legal reforms: Strengthening the rule of law and commercial law is essential for the development of a robust factoring industry.
• Improved information systems: Developing proprietary databases and improving transparency in receivables can help reduce informational opacity.
• Regulatory support: Creating a favorable tax and regulatory environment can encourage more SMEs to use factoring.
• Capacity building: Enhancing the capabilities of factors and SMEs can lead to better integration of factoring into the financial system.

Conclusion

Factoring is a valuable financial instrument for SMEs, particularly in developing and emerging economies, where traditional lending is less accessible. The report highlights the potential of factoring in the EU 8, suggesting that with appropriate policy support and legal reforms, it can become a more significant source of financing for SMEs in these countries. The authors conclude that factoring offers key advantages over traditional lending and is likely to become more important in Eastern Europe as the region continues to develop its financial systems.