The process of invoice factoring is becoming more and more popular around the globe as more people become aware of the potential benefits. According to an International Factoring Association article, demand for factoring is sky high in the country of Kazakhstan, the largest economy in Central Asia. It grew by nearly 200% in 2012 with transaction volumes estimated at $30 million USD.
Factoring in Kazakhstan
Factoring is relatively new to the Kazakhstan financial market, as it entered after the economic crisis there in 2009. Since then, the country has had one of the fastest growing economies in the world, and the factoring industry is growing at a rapid rate. Experts say that factoring is popular because commodity buyers and sellers and small-to-medium businesses can receive immediate payments from shipped goods, when normally they would have to wait. Because factoring is still in its infancy there, a main niche has not yet emerged. Six main factoring companies exist at the moment, and banks are starting to show more interest in the process.
Factoring is increasing throughout the world as more countries catch on. Factoring is now a trillion dollar industry and appears almost everywhere, and transactions have increased by the following amounts on the main continents since 2009:
It is clear that factoring is increasing on a global level, and that more markets are opening up worldwide. Now is a good time to be in the international factoring business, as there are untapped markets all over the world.