USAID Raises Awareness about Factoring as an Alternative Source of Financing for SMEs

Factoring Project
USAID's Factoring Project Kick Off

For Immediate Release

Tuesday, March 27, 2018

 

Today, March 27, 2018, USAID’s Factoring project, in collaboration with the Economic Chamber of Macedonia, conducted the first conference on Factoring as a Financial Solution that Enables SMEs’ Growth at the Economic Chamber of Macedonia, Skopje. The conference brought together SMEs and key stakeholders to raise awareness about factoring, and hosted a lively panel discussion on various aspects of factoring as an alternative source to finance.

Factoring is a tool to help small businesses manage their cash-flow. When a company is owed money, like an invoice for example, they sell the right to collect the money to another company. The other company pays less than the full invoice or debt, but can collect the full amount from the person or company that owes the money. This allows the first company to meet their financial obligations - such as employee payroll and customer orders - without having to wait for the invoice or debt to be paid. Factoring is often quicker and more flexible than traditional business loans or lines of credit, and it is more readily available to small businesses.

In his remarks USAID Country Representative David Atteberry noted, “Our projects in the economic sector are aimed at three goals: creating and supporting an enabling environment for private sector growth, increasing access to finance, and improving competitiveness, especially among SMEs. USAID’s Factoring project is an important activity that addresses all of these goals.”

Minister without portfolio in charge of Regulations for Improvement of the Investment Climate for Domestic Companies Zoran Sapuric added, “Factoring is a very good tool for alternative financing for new businesses that have not had the opportunity to build sufficient credit rating. I encourage companies, particularly MSMEs, to explore and apply this financial tool for their financial needs. Furthermore, I encourage companies to invest in training of people who will have deeper knowledge about different sources of funding, because at the end of the day, companies will benefit the most,” in his remarks.

USAID’s Factoring Project is a three-year activity aimed at accelerating the growth of SMEs by increasing their knowledge and use of factoring, a financial transaction. Factoring can increase SMEs’ effective working capital and improve their cash-flow, thus enabling them to engage new contracts and clients, expand their markets, increase their competitive advantage, and enhance their overall competitiveness. To know more about the project, write to factoringproject@faktortrust.com.mk.

NOTE TO EDITORS:

This year, USAID is marking its 25th anniversary in Macedonia. The American people, through USAID, have invested more than $610 million in the country since 1993. USAID is working with the people of Macedonia to create jobs, strengthen democratic institutions and practices, enhance integrated education, and prepare students for the modern workforce. These initiatives, in partnership with the people of Macedonia, aim to improve the quality of life for all of Macedonia’s citizens. For more information, please visit http://macedonia.usaid.gov and USAID’s Facebook page http://www.facebook.com/USAIDMacedonia.

Last updated: November 14, 2019

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