31.07.2018
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In IH 2018 Bank Millennium assets and factoring turnover set new records
In the first six months of 2018 the Bank’s factoring turnover reached the level of 9,44 billion PLN i.e. increased by 18% y/y. Factoring assets also grew rapidly to the level, at the end of IH, of 2,46 billion PLN. In terms of value of acquired receivables Bank Millennium is ranked the fourth in the market.
Unlike in previous years, seasonal drop in interest in financing of commercial receivables, recorded at the beginning of each year, has not been observed this year. The year 2018 is marked with stable and continuous growth in assets and turnovers, practically month after month.
- Recorded two-digit increases are the effect of, inter alia, development of cooperation with existing clients. In Bank Millennium, we have been focusing our efforts, specifically, to make factoring continuously present in our corporate financing offer. This translated into very high, 9% market share and the market best relations of factoring assets to other forms of financing. We strive to convince entrepreneurs to accept that factoring offers the broadest mix of flexible and comprehensive financing from the moment of issue of payment guarantee or an L/C up to inventory financing – explains Marcin Stefaniuk, Director of the Factoring and Trade Finance Department in Bank Millennium.
Certainly, this strong growth is, by no means, against market trends. At the time of a bullish market we currently face, dynamic supply pressure offers an opportunity of quick earning. Cash discounted earlier can be allocated to finance consecutive purchases of materials or commodities to re-introduce them to trading with margin usually several times exceeding additional financial costs. In the circumstances, naturally growing level of trade receivables constitutes a barrier to growth, which should be removed as quickly and easily as possible.