The current economic context is characterized by pronounced macroeconomic instability, felt by most SMEs in the increasing interest rates. Thus, traditional loans – whether we are talking about short-term loans or credit lines – become increasingly expensive, increasing interest expenses and making financial planning for beneficiaries more difficult due to the unpredictability of their evolution.
Moreover, credit institutions are also changing their risk management policies in response to market volatility and the increase in non-performing loans. For SMEs, this translates into a more frequent request for guarantees when accessing credit, which makes access to financing more difficult.
In these conditions, factoring is a more accessible and less costly alternative compared to traditional loans because you can enjoy obtaining financing in a short time, through a much more streamlined and simple application process, without bureaucracy, and you can be offered by several Banks, NBFIs or Private Investors.