Factoring volumes in Romania have seen a marked increase over
the last year, up to EUR 3.68bln in the first half of 2022,
according to public sources. While part of this 31.6 %
year-on-year surge was driven by inflation rates, local businesses
do appear to show a growing appetite for this type of financing
product.
When do companies opt for factoring?
Usually, what pushes a business to search for supply chain
financing options is either a so-called "liquidity gap"
(short payment deadlines agreed with suppliers, coupled with
long(er) payment term agreed with clients) or an urge to expand the
business to cater to increased demand of one's product or
service. Sometimes it is both.