Rising interest rates to encourage micro-companies to turn to factoring

In February this year, banks granted fewer loans to micro-enterprises than a year earlier. The value of the financing provided also decreased. However, lower loan sales do not mean lower demand for cash in SMEs. According to experts, expensive and difficult to obtain bank loans may encourage entrepreneurs to resort to factoring. As shown by the NFG and KRD survey, three-quarters of companies from the SME sector know this service, and 18.5 percent used it at least once.