Garanti Factoring

Garanti Factoring has been expanding its factoring products and services across the country, serving a wide client base, mainly SMEs and also including importers, exporters, and organizations with widespread supplier and dealer networks.

Activities in 2008

Garanti Factoring raised its market share from 13.3% in 2007 to 14.7% in 2008. Having realised a transaction volume of USD 2.9 billion in the year 2007, Garanti Factoring reached a volume of USD 3.6 billion in 2008. While the total factoring sector was up by 13% in terms of volume in 2007, Garanti Factoring expanded by 25%, advancing its growth faster than the sector.

Garanti Factoring, which raised its year-end profit by 24% to YTL 7.1 million in 2008 also raised its total assets to YTL 750 million.

Upon the reorganisation in terms of Credit Monitoring Systems, new techniques were implemented, particularly those that were developed on early warning systems and as a result of such developments the NPL ratio was limited to some 0.25%.

In 2008, other developments included the launch of the IT project. This will play a significant role in the future of Garanti Factoring and increase the operational efficiency, minimizing the fixed costs within the operational expenses, as well as enabling the Company to become the technological leader of the sector. The IT Project is planned to be completed by mid-June 2009.

With its boutique products available in financing of the foreign trade, Garanti Factoring continued to create added value for its clients in 2008. It has achieved the leadership in the sector, thanks to its focus on the import financing and international suppliers’ financing lines in its import factoring product.

Performing and reporting the collections of corporate clients, by means of a professional collection system through Garanti Factoring’s Call Centre, was an important innovation adopted by Garanti Factoring for its service range during 2008. Within the framework of the service contracts signed in 2008, the Company achieved a total transaction volume of YTL 143 million.

The cooperation, between Garanti Bank and Garanti Factoring, hit the top in 2008 with factoring operations performed at approximately 300 branches of Garanti Bank. In addition to SMEs and Commercial Banking lines, such cooperation reached considerable levels on Corporate Banking side as well with ongoing services provided to the leading enterprises of the country.

Future Plans

Thanks to the draft bill on leasing, factoring and finance companies, which is expected to be enacted in 2009, the operational area of the factoring industry will become more clearly delineated, paving the way for faster growth.

Although foreign financing need of the companies has increased as a result of the global crisis, which emerged in 2008, the shrinking global liquidity is expected to boost the demand for receivable financing products. Offering its uninterrupted support to SMEs in such conjuncture, Garanti Factoring will continue to focus on the receivable financing segment.

It is expected that the demand will increase for export factoring transactions by the exporting companies, which are the leading actors of the national economy, due to the current atmosphere of uncertainty in respect of overseas markets.

Upon completion of its ongoing IT project, Garanti Factoring, the leader in terms of technology as well, will have the infrastructure required for providing faster and more effective services to its clients, including e-factoring solutions.

In 2009, the production portfolio of the Company will be added new offerings geared towards protecting the Turkish exporters against the risks they will be exposed to in international markets, and towards financing of their receivables.

The cooperation with Garanti Bank will be taken further beyond the point achieved in 2008, leading to an increase in the existing cooperation with the branches and lines of business and contributing to the customer satisfaction. Garanti Factoring has set, as its goal, that it conducts factoring transactions at each Garanti branch, and holds each client portfolio where corporate clients exist.

The main goal will be to accelerate the current growth rate, which was achieved in commissions and number of clients, in line with the growing sales team, and to maintain this growth rate, independent of the macro economic circumstances in the year 2009.

Garanti Factoring will further increase its performance in 2009 and cover a considerable distance on its way towards becoming the leader factoring company in Turkey.