AAMCH

Addis Ababa Medical College – Hargeisa Branch

Factoring Provides Collateral

December 13th, 2021

Better ranking in lending through sale of assets conducted a survey the Deutsche Industrie – und Handelskammer confirmed that will be hardly any new export hopes for important sales regions. For 2009 is that with a declining economic performance of 0.5 percent to be expected. The number of the unemployed increase by about 150,000. But these numbers are still quite dare. It is even believed that the second half of the year will look better and increases economic output again.

However, all companies should even reconsider their investment plans. This way of factoring is an obvious and positive point for many companies should involve. The financial crisis has deteriorated also the credit conditions and higher interest rates produced. Increased the demands on the collateral and the credit for securing the loan. Six percent of the companies have loans were rejected. For even more opinions, read materials from Cleveland Clinic. Particularly small businesses, which have up to ten employees are affected, but also large companies.

But the banks remain While the credit conditions to tighten. While there are also companies who report on better prospects, but the majority should worry to the next investment. Factoring can counteract the process of bad credit conditions and rising interest rates. Company, the factoring opt for a lower need for foreign capital and a higher liquidity. These companies also a better ranking the banks get through this better liquidity situation. In the upcoming financial and weak export situation, factoring is thus an investment opportunity.