Hungarian Factoring Association 2021 report.xlsx Download
Hungarian Factoring Association 2020 report.xlsx Download
Hungarian Factoring Association 2019 report.xlsx Download
Hungarian Factoring Association 2018 report.xlsx Download
The position of factoring market on the basis of statistical data of 2011:
2010 | 2011 | |
Gross factoring turnover | 860 | 888 |
Clientele (enterprise) | 3027 | 3048 |
Maturity (day) | 60 | 68 |
Rate of recourse factoring turnover (%) | 48 | 64 |
The chart below presents the segmental gross factoring turnover:
SEGMENT | 2010 | 2011 |
Agriculture | 2 | 4 |
Industry | 33 | 37 |
Building Industry | 7 | 7 |
Trade | 35 | 30 |
Services | 12 | 13 |
Other | 11 | 9 |
Total | 100,0 | 100,0 |
Dividing factoring turnover in accordance with the net income of clientele indicates the size of enterprises requiring factoring services. (as per %)
YEARS | Micro | Small | Medium | Large |
2010 | 12 | 53 | 34 | 1 |
2011 | 11 | 54 | 32 | 3 |
The position of factoring market on the basis of statistical data of 2010:
2009 | 2010 | |
Gross factoring turnover | 745,3 | 883,5 |
Clientele (enterprise) | 3282 | 3131 |
Maturity (day) | 66 | 60 |
Rate of recourse factoring turnover (%) | 73 | 55 |
The chart below presents the segmental gross factoring turnover as of the last 3 years:
SEGMENT | 2008 | 2009 | 2010 |
Agriculture | 4 | 3 | 2 |
Industry | 25 | 32 | 34 |
Building Industry | 10 | 8 | 7 |
Trade | 42 | 35 | 34 |
Services | 12 | 9 | 12 |
Other | 7 | 13 | 11 |
Total | 100,0 | 100,0 | 100,0 |
Dividing factoring turnover in accordance with the net income of clientele indicates the size of enterprises requiring factoring services. (as per %)
YEARS | Micro | Small | Medium | Large |
2008 | 28 | 51 | 21 | - |
2009 | 17 | 55 | 28 | - |
2010 | 12 | 53 | 34 | 1 |
On the last day of April the Hungarian Faktoring Associaton held its Annual General Meeting approving its final annual accounts and renewing mandate of its members.
Ferenc Csáki, CEO of Magyar Factor Zrt. was re-elected as President and with the exception of one member the former Board continues to direct the Association.
Gabriella Rédei, CEO of Next-Faktor Zrt. was re-elected as Vice President of the Board, the former-new members are Anna Bali, Executive of Primátus Zrt. and Tamás Molnár Executive of MKB Bank. A new member of the Board is Zsolt Major-Maróthy, CEO of CE Faktor Zrt.
For the first time in their modern history, the services of factoring accounts receivables faced a 10% market reduction. In spite of this the HUF 750bn gross factoring turnover has grown threefold in the last six years and according to the estimates of the Association this amount is equivalent to the 10% of short-term bank-loans to the SME-sector.
This clearly signals that factoring is far from being a group of marginal financial service, on the contrary, it is a substantial constituent of short-term financing services.
It remains to be one of the main objectives of the Association to create a financing background to our natural clients, the SMEs, where we can foster their growth and help them strengthen.
In accordance with this, the Association takes an active part in preparing for the modification of regulations concerning small and middle-sized companies, e.g. searching for ways to reduce ’chain debts’.
For years it has also been our principal objective to establish a program subsidizing interest based on EU-resourses for those micro and small companies which can survive with the help of lower factoring fees. These resources could help enterprises which – in spite of the financial crisis – have potential markets and would be able to grow but cannot obtain resources on account of the narrow-scale and expensive financing services of banks. Hopefully, such a program for the development of companies can be launched and operated in the near future.
The position of factoring market on the basis of statistical data of 2009:
2008 | 2009 | |
Gross factoring turnover | 831 | 739 |
Clientele (enterprise) | 4474 | 2980 |
Maturity (day) | 69 | 69 |
Rate of recourse factoring turnover (%) | 73 |
73 |
The chart below presents the segmental gross factoring turnover as of the last 3 years:
SEGMENT | 2007 | 2008 | 2009 |
Agriculture | 5 | 4 | 3 |
Industry | 26 | 25 | 32 |
Building Industry | 13 | 10 | 8 |
Trade | 39 | 42 | 35 |
Services | 10 | 12 | 9 |
Other | 7 | 7 | 13 |
Total | 100,0 | 100,0 | 100,0 |
Dividing factoring turnover in accordance with the net income of clientele indicates the size of enterprises requiring factoring services. (as per %)
YEARS | Micro |
Small | Medium |
2008 | 28 | 51 | 21 |
2009 | 17 | 55 | 28 |
On the General Meeting of 23 09 2009 the Association awarded Károly Martinkó with the For Factoring Medallion. The award was handed over by Ferenc Csáki, president of the Association. In this manner the members recognized Károly Martinkó's outstanding achievement in the foundation of the Associaton, in defining its activities and in the development of factoring services.
At the end of 2007 the Association requested the Ministry of Finance to opinionate on Value-Added Tax Act of 2008 concerning factoring. The Association holds that as far as VAT is concerned the principal guideline is the actual economic content of factoring. The opinion of the Association concurs with the Unidroit Agreement, which is considered valid worldwide. The Agreement was ratified by Hungary too. The Agreement defines factoring as a contractual form with sales clause including a number of services based on assignment. Its elements are:
Since factoring is a combination of services (minimum 2, or 3,4), a dominant activity cannot be defined. According to the Association each service can be handled as regard to VAT in the following terms:
After negotiating with the Ministry of Finance the Hungarian Inland Revenue Office has recently reviewed the Association’s request and confirmed in its statement the professional opinion of the Association. Quotation from the letter:
„Out of the above listed elements of services – on the basis of its content - the service referred to in point 1)can belong to the financial services listed in VAT Act points b)-f) of Subsection (1)of Section 86. and the services listed in points 2)-4)….. are taxable at standard rate.
On the basis of the aforesaid…factoring as defined by the Unidroit Agreement , and taking into consideration that it can never be solely regarded as finance (since it has to contain at least two of the above listed elements of services)is a complex transaction in which the fees paid by the client to the factor are billed burdened with 20%VAT rate.
At the same time factoring typically consists of financing element too, which element, - considered individually – would be tax free service on the basis of the VAT Act point d). Subsection(1) of Section 86.
According to our standpoint, if, during factoring process, the financial element appears and it is clearly separable from other services provided by the factor, the equivalent of the financial service is to be invoiced tax-free, while the equivalent of other services is to be invoiced charged with 20 %VAT.”
I About Us I List of Members I The Articles I News I Professional Cooperations I
I Contact Us I