Factoring (Russian market)

2024: Alfa-Bank created a factoring subsidiary

In September 2024 Alfa-Bank , he registered a subsidiary for the provision of factoring services - LLC Alpha factoring"." The authorized capital of the new legal entity is 10 million, rubles Leonid Kultygin, who previously held the post of head of the factoring directorate of Alfa-Bank, was appointed general director of the company. More. here

2023: Factoring market growth by 57% to RUB 2.26 trillion

At the end of 2023, the factoring market portfolio in Russia reached 2.26 trillion rubles. This is 57%, or about 822 billion rubles, more than in the previous year, when the figure was 1.43 trillion rubles. The share of non-recourse transactions was 84.7%. Such indicators are given in the review of the Association of Factoring Companies (AFK), published in mid-February 2024.

The report says that in 2023 the amount of funding paid amounted to 7.73 trillion rubles - this is a third (1.9 trillion rubles) more in relation to 2022 (5.81 trillion rubles). In the structure of paid financing in 2023, the share of transactions without regression amounted to 81.4%.

Without a few 15 thousand client companies used factoring during 2023: according to this indicator, an increase of 20% was recorded on an annualized basis. Market participants accepted 5.7 thousand new customers for service. As of January 1, 2024, factors accumulated the debt of 12.6 thousand debtors, including 3654 debtors accepted from the beginning of 2023. The number of customers grew by 5% year-on-year.

Approximately 14.8 million deliveries were transferred to factoring during 2023, which is 19% more compared to 2022. The average amount of financed delivery at the end of 2023 amounted to about 524 thousand rubles, showing an increase of 12%. Over the year, factors received about 167 billion rubles in remuneration for the services provided.

In the segment of small and medium-sized businesses, the factoring portfolio by the end of 2023 exceeded 166 billion rubles (plus 28% year-on-year). At the same time, about 9.9 thousand customers in this segment received approximately 725 billion rubles of factoring financing.

In 2023, about 1.5 trillion rubles were paid for supply chain financing products (SCF), which is 39% more than in 2022. By the end of 2023, outstanding assets under SCF transactions amounted to 642 billion rubles, an increase of 70% over the year. In the total market portfolio, SCF's share was 29%, in the total funding paid - 19%.^[1]

2021: The Russian factoring market grew by 45%, to 84.95 billion rubles

The Russian factoring market for 2021 added 45% and reached 84.95 billion rubles (revenues of factors). This is evidenced by the data of the Association of Factoring Companies (AFK), which were published in February 2022.

According to Kommersant, citing AFK statistics, in 2021 the amount of funding paid on the market amounted to 5.8 trillion rubles, which is 50% higher than a year ago. Most of the financing (79%) was provided without recourse to customers, the number of which increased by 17% to 11 thousand companies over the year. The number of debtors amounted to 10.5 thousand companies (an increase of 4% over the year). The average amount of financed delivery reached 446 thousand rubles (+ 30% compared to the previous year), the total number of deliveries transferred to factoring in 2021 exceeded 13 million units (+ 15%).

The Russian factoring market grew by 45%, to 84.95 billion rubles

The market leader - VTB Group - in 2021 increased factoring revenues by 35%, to 36.2 billion rubles. The revenues of Sberbank increased 1.6 times, to 16.4 billion rubles, Alfa-Bank - 1.4 times, to 11.1 billion rubles. PSB Group also became one of the most dynamic players, increasing revenues from factoring operations by 62% over the year.

In the sectoral diversification of credit risk as of January 1, 2022, the share of the mining sector increased to 22% (269 billion rubles, + 55% year-on-year), up to 26% - the share of wholesale trade (315 billion rubles) with the dominance of the household appliances and electronics sectors (88.3 billion rubles, + 31% yoy) and non-food products (54.3 billion rubles, + 39%), machinery and equipment production sectors lost their dynamics (102 billion rubles, -3%) and chemical and petrochemical production (92 billion rubles, 0% growth). The customer base of respondents is concentrated in the food trade sectors (1,044 companies) and non-food products (768), as well as in the food industry (527) and construction (^[2]

2018: Data Expert RA

The Expert RA rating agency summed up the preliminary results of the survey of Russian Factors at the end of 2018. According to the agency's estimates, the total amount of financing provided by the Factors showed an increase of 42% compared to 2017 and reached about 2.6 trillion rubles, which is largely due to the dynamic growth of both the traditionally leading largest players (VTB Factoring LLC, ALFA-BANK JSC, GPB Factoring LLC, RB Factoring LLC) and relatively new market participants (Raiffeisen Bank JSC and Sberbank Factoring LLC) (see table).

Questionnaires were provided to the agency by 25 Factors. The total portfolio of survey participants as of 01.01.2019 exceeded 580 billion rubles. In total, the companies that provided the data account for 2,530 billion rubles. financing paid, which covers about 96% of the market.

2017: Forecast

According to the basic forecast of RAEX (Expert RA), in 2017 factoring turnover will increase by 7% as a result of large-scale transactions in the real sector and an increase in factoring penetration into the trading segment due to the distribution of EDI technologies. At the same time, the expected opening of the system access of factoring to the state order segment in 2017 will significantly affect the market volumes no earlier than 2018^[3]

The key challenge for factoring market participants in 2016 was the tightening of price competition. The reasons for the growth of competition were a decrease in the number of high-quality clients from industries familiar to factoring, as well as the emergence of new players on the market. At the same time, on the one hand, increased competition stimulates the growth of manufacturability of transactions. A striking example is the implementation of a pilot project of a deal using blockchain technology in early 2017. On the other hand, increased competition puts pressure on the marginality of factor transactions.

In particular, in 2016, half of the respondents who formed more than a third of the market turnover and provided relevant data had a decrease in remuneration by an average of 3-5%, while the turnover increased by 15%.

According to the basic forecast of RAEX (Expert RA), the growth of the factoring market in 2017 will be about 7%. This forecast implies official inflation at the level of 5-6%, which will lead to a decrease in the key rate of the Central Bank of the Russian Federation to 8.5-9%. The average annual price for Brent crude oil will be about $50 per barrel, and market volumes - about 2.2 trillion rubles. The positive scenario is based on the prerequisites for rising oil prices (the average annual level is $60) and reducing inflation to 4%, which will allow the Central Bank of the Russian Federation to lower the key rate by 2-3 pp to 7-8% during the year. As a result, market leaders, thanks to cheaper funding, will be able to offer customers even more attractive conditions. The growth of the factoring market in such circumstances will be about 14%, and the total volume of assigned monetary claims will reach about 2.4 trillion rubles.

The market driver in 2018 may be factoring in the state order segment, which is previously practically inaccessible due to the peculiarities of the legislation. "In 2017, these restrictions are expected to be lifted, and we will see a positive effect for the factoring market, most likely, already in 2018," say analysts at Expert RA. The activation of work in this segment, in their opinion, will lead to a new wave of credit replacement by factoring. Potentially, the discovery of such a factorable niche could lead to new players entering the market, which will further increase competition and exacerbate the problem of holding margins. Therefore, by the end of 2018, in the context of price dumping, it is most likely that interest in factoring business will decrease in favor of investments in low-risk instruments, which may restrain the development of factoring.

Historically, factoring transactions in the state order segment were practically inaccessible due to the lack of regulated rules in the regulations under which the company - the executor of the state order could assign the receivables of the government agency. Moreover, according to the law "On public procurement," the change of supplier under state contracts is not allowed, which actually means a ban on factoring in the field of state order. Back in 2013, the factoring community actively promoted the removal of these restrictions, but then initiatives to amend the legislation were not supported. Even despite certain judicial precedents on this problem in favor of factoring companies, the public position of the Ministry of Finance of the Russian Federation remained negative.

Again, the government, together with the factoring community, returned to the issue of securing factoring access to the state order in 2016, when it became clear that the anti-crisis plan providing for the expansion of SME access to credit resources and public procurement could not be implemented. The main reason restraining the work of SMEs with state customers is the limited possibilities of using market mechanisms for financing cash gaps. A significant tool for financial support for SMEs can be the access of factoring companies to government orders. In this regard, the factoring community, together with entrepreneurs, initiated appropriate amendments to regulatory legal acts, which were approved by a number of ministries and are likely to be considered by the State Duma in May 2017. Despite the fact that certain transactions on the market have already been implemented, the corresponding changes in regulatory acts, according to Expert RA, will dramatically increase the prevalence of factoring for SMEs relative to other financial instruments (especially lending) since 2018.

At the same time, the intensification of work in the government order segment also entails risks associated with the specificity of forecasting incoming funds from budgets. In addition, potentially opening a new factor niche could lead to even more players entering the market, which will significantly increase competition.

As a result, by the end of 2018, the key challenge for the market, along with the competition, will remain the problem of holding margins. In the context of maintaining price dumping, it is most likely that interest in factoring business will decrease in favor of investments in low-risk instruments, which may restrain the development of the market.

2016: Factoring turnover 2 trillion 79 billion rubles

In 2016, the turnover of Russian factoring increased by 13% compared to 2015 and amounted to 2 trillion 79 billion rubles. The amount of funding paid increased by almost 10% to 1.5 trillion rubles, the total factoring portfolio as of December 31, 2016 turned out to be more than 5 billion rubles compared to 2015, and its average turnover decreased from 68 to 65 days.

According to the Association of Factoring Companies, factoring turnover in the first half of 2016 increased by 8 percent and amounted to 695 billion rubles. As of July 1, 2016, Alfa-Bank's factoring portfolio reached RUB 22.4 billion (+ 62% compared to the same period in 2015), and turnover in the first six months of the year - RUB 106.8 billion (+ 69%).

RAEX (RA Expert), according to factor questionnaires: In 2016, the annual amount of monetary claims assigned to factors again exceeded 2 trillion rubles

The total amount of monetary claims assigned to factors for 2016 amounted to about 2.1 trillion rubles, adding 13% to the 2015 result. However, taking into account the inflationary component in real terms, the market reduction relative to the 2014 result reached about 10-15%, and the share of factoring in GDP in two years decreased from 2.6% to 2.3%. The nominal growth of the market was largely facilitated by the recovery of transactions in the manufacturing sector among major factors, as well as the revival of final demand in the segment of non-food trade. Although the main increase in problematic assets of factors fell on 2015, some of the significant players in the factoring market in 2016 faced a deterioration in the payment discipline of a number of companies engaged in the fields of power, jewelry business, and electronics trade.

According to the results of 2016, 21 factors took part in the study, the total turnover of which, according to Expert RA, is about 85% of the total factoring market.

The dynamics of the indicators of the majority of the study participants reflects the recovery growth of the business after the drawdown in 2015. Only four of the 22 factors that provided the data to the agency showed negative dynamics in business volumes. Among them are Promsvyazbank, GPB Group, Otkritie FC Bank and Credit Bank of Moscow. Near-zero business growth rates were shown by the leader of the VTB factoring market, the volume of ceded monetary claims of which decreased by 0.9% in 2016.

According to the results of 2016, the three leading players in the Russian factoring market - VTB Factoring, Promsvyazbank and Alfa-Bank - and their share in the total volume of assigned monetary claims (about 50%) remained unchanged compared to last year. At the same time, as a result of the negative dynamics of Otkritie FC's business volumes and the intensification of Sberbank factoring's activities, in 2016 there was a change in the balance of power in the market among other participants from the top 5: GPB Group rose from the fifth to the fourth line of ranking in terms of the volume of monetary claims assigned, Sberbank factoring took fifth place, moving Otkritie FC Bank to the sixth position of ranking.

In 2016, the structure of the factoring market in terms of the volume of customers' business did not undergo significant changes compared to the results of 2015: transactions with large companies continue to prevail over transactions in the SME segment. At the same time, according to the survey of factors, the share of transactions with SMEs increased in 2016 by 7 pp to 28%. The observed volatility can be justified by a decrease in the information transparency of a number of large market participants: in 2016, information on the distribution of transactions by client segments was provided by factors that accounted for about 43% of the total market turnover. In 2015, coverage was about 67% of turnover.

2015: Turnover of 18 AFK participants amounted to RUB 1.85 trillion

The total turnover of 18 AFK participants who provided data amounted to 1 trillion 845 billion (1.85 trillion rubles), which is 10% lower than in 2014, the total portfolio as of December 31, 2015 reached 260 billion rubles (preliminary data). Taking into account the assessment of the indicators of organizations that did not disclose the data, the turnover of AFK participants in 2015 is 1 trillion 527 billion rubles, the total portfolio is 287 billion rubles.

The market dynamics for the first time in the last six years turned out to be in negative values ​ ​ "year-to-year." The total turnover of the market takes into account the indicators of Factors that refused to disclose data at the end of the year - these are 29 Factors, whose turnover is estimated at 112 billion rubles.

The amount of financing paid amounted to 1.4 trillion rubles (-15% per year), the total factoring portfolio on the 31.12.2015 decreased by 2 percentage points (- 5 billion rubles) compared to 31.12.2014 and amounted to 304 billion rubles.

Factoring was used by 5.4 thousand companies (-40%) in settlements with 14.3 thousand (-36%) of customers-debtors, the number of ceded deliveries decreased by 18% - to 7.5 million, however, the income of Factors in 2015 exceeded 36 billion rubles due to an increase in the cost of financing provided, the share of financed deliveries for the year did not change and amounted to 79%, turnover of the portfolio for the year decreased from 73 to 68 days.

VTB Factoring (24%), Promsvyazbank (19%), Alfa-Bank (9%), Otkritie FC Bank (8%), GPB-factoring (7%) hold the largest shares in the market turnover.

In regional markets, VTB Factoring is the leader in terms of operations in Moscow, St. Petersburg, the Volga, South Federal District and the Far Eastern Federal Districts, in the Central, North-West, Siberian and North Caucasus Federal Districts - Promsvyazbank, in the Ural Federal District - GPB factoring.

Factors not included in AFK took part in the collection of preliminary data: GPB factoring, Capital Factoring, FC St. Petersburg, FEK, Economy factoring, as well as banks - Cetelem Bank, SOYUZ, Citibank, Credit Europe Bank, OTP Bank, Izhkombank. Their total turnover in January-December 2015 amounted to 286 billion rubles, the total portfolio for 31.12.2015 - about 42 billion rubles.

Below are the data of AFK members on the development of their international factoring operations in 2015, before amendments to the currency legislation of Russia.

2014

Turnover of 32 AFC participants amounted to 2.1 trillion rubles

In February 2015, the Association of Factoring Companies (AFK) of ^[4]. published statistical indicators of Russian Factors activity in 2014. According to the data received and AFK estimates, the turnover of Russian factoring amounted to 2,057 billion rubles (2.1 trillion rubles), which is 8% higher than in 2013.

The market growth rate decreased by 24 percentage points compared to 2013 (32%), the amount of financing paid amounted to 1.6 trillion rubles (+ 2% per year), the total factoring portfolio on the 31.12.2014 decreased by 6 percentage points (- 20 billion rubles) compared to 31.12.2013 and amounted to 309 billion rubles.

9 thousand companies used factoring when calculating with 22 thousand customers-debtors, the number of assigned deliveries increased to 9 million, the income of Factors in 2014 exceeded 30 billion rubles, the share of financed deliveries decreased to 79%, the turnover of the portfolio increased to 73 days.

The study processed 32 completed questionnaires, as well as anonymous data on the turnover of 14 organizations providing factoring services in Russia.

Statistical results of the development of Russian factoring in 2014:

• the volume of assigned claims - 2.1 trillion rubles. (+ 8% per year)
• the amount of financing paid - 1.6 trillion rubles. (+ 2%)
• total portfolio - 309 billion rubles. (- 6%)
• number of clients - 9,026 firms (+ 5%)
• number of customers - 22,188 companies (-4%)
• number of deliveries - 9 million invoices (+ 18%)
• the volume of collected commissions - 30 billion rubles. (+ 26%)

The largest shares in the market turnover are occupied by VTB Factoring (21.2%), Promsvyazbank (20.8%), Alfa-Bank (10%), Bank Petrokommerts (6%), RB Factoring (4%).

VTB Factoring is the leader in regional markets in terms of operations in Moscow, St. Petersburg, Volga, Siberian and Far Eastern federal districts, Promsvyazbank in the Central, North-West and North Caucasus federal districts, Gazprombank in the Ural Federal District, and Petrocommerce Bank in the Southern Federal District.

According to the Factors consensus forecast, in 2015, market growth for the first time since 2009 will be replaced by a 17% drop compared to the previous year - to 1.7 trillion rubles:

The consensus forecast for the development of factoring in 2015: turnover of 1.7 trillion rubles, a drop of 17%.

The turnover of Russian factoring in the SME segment 401 billion rubles

In the spring of 2015, the Association of Factoring Companies (AFK), with the support of OJSC SME Bank, conducted a regular collection of statistical indicators of the activities of Russian Factors in the small and medium-sized business (SME) segment in 2014. According to the data received from the questionnaires, the turnover of Russian factoring in the SME segment in 2014 amounted to about 401 billion rubles.

In 2014, the turnover of Russian factoring in the SME segment increased by 99.8 billion rubles compared to 2013, which corresponds to an increase of 33% - four times more than in the market as a whole (+ 8%, to 2.06 trillion rubles). The total factoring portfolio formed by SME customers amounted to RUR 67,872 million in 31.12.2014, an increase of 32% compared to 31.12.2013.

In 2014, over 5200 small and medium-sized companies and individual entrepreneurs used factoring services, which is 58% of the total client base of the factoring market (9 thousand companies).

While the overall market turnover, according to the Factors consensus forecast, will decrease by 17% to RUB 1.7 trillion in 2015, the Factors segment expects growth of 12% to RUB 450 billion on average in 2015. The forecast for portfolio growth by 31.12.2014 is plus 9%, up to 74 billion rubles.

2013: Turnover of 14 AFK participants amounted to 1.4 trillion rubles

The total turnover of 14 AFK participants (Excluding data from Vozrozhdenie Bank (OJSC), FactorRus LLC and Belinvestbank OJSC) who provided the data amounted to 1 trillion 477 billion rubles, the total portfolio as of January 01, 2014 reached 251 billion rubles.

In the 4th quarter of 2013, the turnover of AFK participants increased by 491 billion rubles, an increase of 50%. The total portfolio increased by 26% compared to October 01, 2013.

Compared to the results of 2012, the growth of the total turnover of AFK participants amounted to 121%, the total portfolio increased by 176%. Over the past twelve months, five new participants have joined AFK - Belinvestbank OJSC, VTB Factoring, Alfa-Bank OJSC, Life Factoring and OFK-Management.

AFK continues to collect statistical information on the development of the factoring market in Russia in 2013 as a whole. Detailed results will be presented in February of this year. According to the results of 9 months of 2013, AFK participants formed 84% of the turnover of the Russian factoring market. The data of the AFK participants for 2013 suggest that if this proportion is maintained, the total turnover of the entire market for the year may not exceed 1.8 trillion rubles, which corresponds to a 25% growth of the market in 2013.

Notes