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ANALYSIS OF PROBLEMS OF DEVELOPMENT OF FACTORING
IN THE RUSSIAN FEDERATION Nanieva E.B.1, Varibrus M.P.2 Email: Nanieva1797@scientifictext.ru
'Nanieva Elena Badrievna — Student;
2Varibrus Maria Petrovna — Student, INTERNATIONAL FINANCE FACULTY, FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION,
MOSCOW
Abstract: in this article we try to analyze the possible problems of development of factoring in the present conditions of Russian economy. The main problem of the development of Russian market of factoring in recent times is the reduction of the base of potential customers. The growth of commissions' rates is not as frightening for the clients as the conditions on which factors provide financing. Factoring has become even more complicated for both sides during crisis: for suppliers and factors. We will try to show up its advantages and disadvantages and formulate the crucial principles for further development of factoring.
Keywords: factoring, accounts receivable financing, urgency.
АНАЛИЗ ПРОБЛЕМ РАЗВИТИЯ ФАКТОРИНГА В РОССИЙСКОЙ
ФЕДЕРАЦИИ Наниева Е.Б.1, Варибрус М.П.2
'Наниева Елена Бадриевна — студент; 2Варибрус Мария Петровна — студент, факультет международных финансов, Финансовый университет при Правительстве Российской Федерации, г. Москва
Аннотация: в данной статье приведён анализ возможных проблем развития факторинга в условиях современной экономики России. Одна из основных проблем развития факторинга в России в данный момент заключается в сокращении базы потенциальных клиентов. Растущая комиссионная ставка выглядит для клиентов не так пугающе, как условия, по которым факторы производят финансирование. За времена кризиса факторинговые операции стали более проблематичными для обеих сторон: поставщиков и факторов. Мы попробуем выявить преимущества и недостатки и сформулируем ключевые принципы для дальнейшего развития факторинга.
Ключевые слова: факторинг, финансирование дебиторской задолженности, актуальность.
УДК 336.7'
In this article we will try to analyze the type of financial service known as factoring, if it can/cannot become popular in the Russian realities, what are main problems of its development and if attempts to develop factoring in Russian Federation can become successful. First of all, let's answer the question: what factoring is?
Factoring or accounts receivable financing is a type of financial services, set of transactions in which a company sells its accounts receivable to some financial organization (in other words to the factor). The factor company on its turn collects itself customers' accounts receivable. [1] Briefly speaking, it allows customers to get cash from their accounts receivable much faster rather than waiting for them for 30-60 days. The commission on the services of a factor company is 1,5-3% abroad. In Russia the rate varies from 15 to 20%.
Despite the fact that factoring is not well-known in our country, it has lots of advantages for possible clients as well as for potential investors. Main advantages for clients are:
- Factoring is not a loan, so you do not get into debt.
- It's based on the quality of the customers' credit and not on you credit history.
- Factoring provides free support, including operating collections from your customers.
- Factoring is available for a wide range of small and middle business companies as users do not have to put in pledge.
- Mechanisms of factoring allow even to save funds on income taxes.
All in all, factoring gives you more time and resources to concentrate fully on managing and developing your business. It's a useful instrument aimed for the expansion of the volumes of sales.
What about investors - it can be beneficial to do with factoring because of its value. Due to the data got from recent questioning of companies - the annual interest rate of factoring's financing is 18-21%.
In the Russian market of financial services factoring has existed for a rather short period and it has overcome the following stages of development:
I. 1988-1999 - the establishment of factoring in Russia
The first factoring contracts were signed in our country in 1988. These were periodic contracts between large suppliers and famous banks. The systematic development began in 1999, when the first specialized organization - National Factoring Company - occurred.
II. 2000-2010 - enlargement of the factoring services influence on the financial market
During the 10 years period the factoring market had changed significantly. Not only banks participated as the factors, but also specialized financial institutions. Huge business-players became the banks target, and it allowed small factors to develop as their group of interest were medium- and small-sized entities. Despite the clear market segmentation, competition among factors was quite high.
III. 2011-2014 - active development of factoring in Russia
In the period from 2010 to 2011 the branch growth was 80%. It allowed the subsequent years to show the positive dynamics.
IV. 2013-2014 - stagnation
And what's the situation with factoring in Russia today?
Actually there are lots of problems which limit its future development and inhibit its escape from situation of stagnation.
Briefly speaking these problems come to the following:
- Lack of liquidity.
- Legislation in Russia is not adapted for factoring requirements.
- Undeveloped risk management system.
- Reduction of counteragent paying capacity.
- "Eating" a factoring product by a loan inside a bank.
- Strict conditions for getting factoring.
- Russian tax authorities do not take factoring for a form of business financing.
- Factoring as a mechanism of financing is not rather well-known among local customers of financial services.
Let's find out what are the main reasons of a such amount of difficulties.
The main problem of the development of Russian market of factoring in recent times is the reduction of the base of potential customers. It happens due to the fact, that the factor companies are toughening their requirements to the clients. Today it becomes harder and harder to get financing from factors due to the crisis in Russia. The growth of commissions' rates is not as frightening for the clients as the conditions on which factors provide financing. Some of these conditions are:
- Strict requirements to the company's debtors
- High costs of factoring deals
- Volumes of transactions should be large to get financing from factors.
So, the majority of companies prefer operating their businesses only by their own funds.
Factoring has become even more complicated for both sides during crisis: for suppliers and factors. A high share of borrowed funds in liabilities on the peak of crisis has become one of the main reasons for the instability of the financial situation of many companies (suppliers). At the same time factors met such problems as rapid narrowing of the client base together with solving the funding problem and a growing competition in the segment of low-risk factoring.
This segment of factoring is becoming less profitable as a business due to the fact, that it doesn't demonstrate a sufficiently high return of capital. So, factoring is becoming less attractive and amounts of investments into it are reduced. It's evident that all these will not encourage people to make serious investments into the development of factoring infrastructure in the near future.
Another problem of development of factoring in Russia is that factoring is developed either by large banks or by small companies. Of course, clients prefer more stable systems - large banks. This leads to huge problem for factoring as all attempts to acclimatize factoring inside banks are doomed for failure. This is so because:
Firstly - banks often do not distinguish factoring and credit segment. Often they do not understand the difference of factoring and loan as products. The representatives of factoring segments of Russian
banks note that often it happened so that factoring transactions were operated under credit technologies. And, of course, it influenced its operation badly, actually deprived factoring of its advantages for clients.
So factoring should be operated by separate from banks companies as it's a separate product with its own set of technologies, with its own system of risk estimation, with its own client base etc. Being specialized and separated the activities would be more profitable and effective.
On the developed markets factoring business is a direct rival to the banks. Those companies, which find it problematic to continue cooperation with commercial banks often betake to factoring. Despite this, in Russian realities bank loans segment "eats" segment of factoring even because formally it has lower interest rates. So factoring looks much less attractive for customers and they do prefer loans.
As you can see, factoring should be mainly developed by specialized companies, which are unfortunately dislodged from the market of financial services by banks.
To sum up, factoring cannot be developed in Russia until some adjustments of it are accepted. For launching factoring's stable development in Russia it's necessary at least:
- To establish a number of specialized only on factoring organizations.
- To attract capital necessary for its development.
- To attract highly-educated professionals.
- To attract consulting companies.
- To advertise it widely and to make wide range of people understand its uniqueness.
- To make legal amendments.
- To provide concrete accounting rules for factoring transactions.
- To reduce interest rate as much as its possible.
- To adopt scoring systems of risk estimation.
- To reduce / moderate requirements of factors.
References
1. Адамова К.Р. Факторинговые операции коммерческих банков // Бизнес и банки, 2000. № 15.
2. Попова Т. Международные факторинговые операции: разработка технологии // Банковские технологии, 1996. № 10.
ПРОБЛЕМЫ НАЛОГОВОГО СТИМУЛИРОВАНИЯ ИНВЕСТИЦИОННОЙ ДЕЯТЕЛЬНОСТИ В РОССИИ Рустамзаде М.Н. Email: Rustamzade1797@scientifictext.ru
Рустамзаде Минаввар Намиг кызы — студент, финансово-экономический факультет, Финансовый университет при Правительстве Российской Федерации, г. Москва
Аннотация: сегодня в налоговой политике России в области стимулирования инвестиционной деятельности важнейшей задачей является создание благоприятного инвестиционного климата для инвесторов. Однако существующее несовершенство налоговой системы, в частности, нормативно-правовых актов, регламентирующих налогообложение в сфере инвестирования, не позволяет инвесторам в полной мере использовать налоговые преференции. Поэтому выявление этих проблем, а также их решение с использованием научных методов является необходимым элементом налоговой политики государства в сфере налогового стимулирования инвестиционной деятельности.
Ключевые слова: налоговая льгота, особая экономическая зона, ускоренная амортизация, налоговые каникулы.
