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eBanka and Cash Reform offer factoring
In cooperation with the company Cash Reform, eBanka provides its clients with a new service – factoring. eBanka has chosen the largest Czech non-bank factor for the new service in its product portfolio.
Factoring is a method of corporate financing based on sale of its short-term receivables under supplies of goods and services. The receivables are usually financed without any further security, only on the basis of assessment of risk related to specific customers and the client. Thus it is an alternative corporate financing for situations, where a classic bank credit product would be difficult to obtain.
Factoring is a product with high potential primarily for small and medium sized enterprises that belong to eBanka’s key segments. This fact is also supported by great interest of the bank’s corporate clients in the service. In the first month after introducing the service, many contracts between eBanka’s clients and its contractual factor, CASH REFORM, were concluded, reaching a volume of several tens thousand CZK. Both partners estimate that the yearly volume of contracts shall amount to hundreds of millions koruna.
Currently, factoring services are used by approximately 20% of Czech companies. The share of factoring trades in the total GDP of the Czech Republic is around 3%, while in Europe, the same number amounts approximately 5%. Therefore, eBanka supposes that the interest of Czech companies in factoring services will dynamically grow in the future years.
The cooperation of eBanka and CASH REFORM will bring higher comfort to the clients due to interconnection of the wide range of financial products of the bank and flexibility of a non-bank service provider, as well as increased swiftness of servicing of small and medium sized companies directly in specific regions.
eBanka, a.s. is a universal bank for solvent individuals and small and medium sized companies. It provides its clients with a complex portfolio of financial products and services emphasizing the use of direct banking. eBanka is a member of the financial group of Česká pojišťovna, the strongest Czech financial group. Česká pojišťovna holds 100% of shares in eBanka. The total number of clients of eBanka already exceeded 470 thousand. Corporate and Personal accounts at eBanka are used by almost 115 thousand clients; 175 thousand clients are holding products from the ČP Finance program and over 184 thousand clients are actively using the silver HomeCredit credit card. eBanka is holding the awards for the Most dynamic bank of 2005 and Account of the year 2005.
CASH REFORM, a.s. is the largest non-bank factoring company in the Czech Republic. It focuses on providing sufficient operational funds to small and medium enterprises. Solutions based on the factoring principle, which the company offers to its clients, are always built on specifics in the client’s industry and promptness is largely emphasized. CASH REFORM operates in the market since the early nineties. It is a dynamically growing company, whose clients’ turnover in the year 2005 increased by 55% and thus exceeded CZK 3.4 billion. The company is seated in Brno.
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