Factors saw an increase in business in 2009 thanks to difficulties of other banking institutions. As traditional lenders willingness to lend begins to thaw, this trend is expected to continue regardless.
2009 sales grew despite lowered factoring volume from existing clients. This is due in great part to factors attracting new clients by either stealing market share from distressed competition (CIT, GMAC) as well as referrals from banks looking to help depository clients unable to secure loans.
While several factoring clients will depart for more traditional means of borrowing, the fact remains that the majority of clients that stay will enjoy increased sales as consumer confidence returns...bringing with it increased factoring volume.
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