This document summarizes an annual study on digital factoring services for small and medium enterprises (SMEs) in Central and Eastern Europe. It analyzed 12 banks and factoring companies across Poland, Romania, Latvia, and Turkey based on 17 parameters of their online factoring offerings. The study found that the COVID-19 pandemic increased demand for asset-based lending like factoring and drove traditional financial institutions to offer more online products. However, digital factoring offerings in the region still only allow for partial integration with e-invoicing and accounting systems and online/mobile banking. The full study contains an analysis table comparing the 17 parameters for each company and additional documentation.

1. Digital Factoring
for SMEs
CEE 2020
Annual
Study
Report
SME Banking Club, September 2020

2. Online Banking for SMEs - CEE 2019
About the Study
2
• An annual Review on the possibility to
apply and get a factoring fully online for
Micro & SME customers (entrepreneurs
and companies) provided by banks &
FinTechs in the CEE countries
• Analyzed countries: Poland, Romania,
Latvia, Turkey
• Period of analysis: May-July 2020
• The study includes a description of the
main trends in digital factoring and a
detailed analysis of digital process.
Digital Factoring for SMEs - CEE 2020

3. Online Banking for SMEs - CEE 2019 3
Effects of the pandemic for SMEs in the CEE region:
international trade & factoring
1. Decreasing of EU trade volumes:
• ⬇ of trade operations in the EU – moving
to new markets
• ⬇ import from China – search for new
suppliers
2. Africa, MENA, Latin America & Asia could
be new potential markets:
• Lack of contacts/partners on these markets
• Lack of experience in the new markets,
business culture
3. The extension of payment deadlines
Main challenges for SMEs
1. Tightening lending policies in banks shifts the
possibility of financing to a more secure form
of Asset Based Lending (leasing and
factoring) which increases its popularity
2. Limited opportunities for physical contact
with branches/RMs engages traditional
financial services providers in online
products – digitalization of sales
3. The rapid development of remote sales
channels increases acceptability and
understanding of products available online
such as digital online factoring, Invoice
finance & Trade Finance platforms
Opportunities for Banks/FinTechs

4. Online Banking for SMEs - CEE 2019 4
Factoring: key trends in the CEE market
Digital Factoring for SMEs - CEE 2020
Real focus on SME segment
Offering Factoring services

5. Online Banking for SMEs - CEE 2019 5
Factoring: key trends in the CEE market
Companies offering online factoring services for SMEs
FinTech & Nonbanking factoring
companies
Banks & Banking factoring
companies
Poland 7
Romania 2
Latvia 1
Turkey 2
Digital Factoring for SMEs - CEE 2020
Only Online
Application
Only Online
Application
Only Online
Application

6. Online Banking for SMEs - CEE 2019 6
Factoring Product Description
Aggregated Product Parameters
Digital Factoring for SMEs - CEE 2020
Main Product Parameters Description/Comments
Factoring Product for SMEs • Domestic factoring (invoices issued to domestic counterparties)
in LCY or EUR
• Recourse factoring
Invoice payment terms 7-90 days
Invoice amount Min – 50 EUR, Max – 5000 EUR
% of financing From 70% up to 100%
TTC From 15 min till 24h
Integrations with e-invoicing/accounting
systems
Partially
Integrations with online/mobile banking Partially

7. Best Features
from TOP Banks & FinTechs

8. Online Banking for SMEs - CEE 2019 8
Data collection:
• Direct and demo access to factoring modules of Online & Mobile Apps, websites and factoring
platforms
• Desk study: collection of publicly available information (manuals, instructions, videos)
• Interview with specialists of banks & factoring companies responsible for small business, calls to call
centers, applications received from banks & factoring companies
Results:
Methodology
Table
17 Online Factoring
parameters from 12
companies
1 Table 16 extra
docs
(prt sc, Manuals, Videos)
PDF-
document with Study
results
1 Study
Digital Factoring for SMEs - CEE 2020

9. Online Banking for SMEs - CEE 2019
Excel table with 17 Online Factoring parameters from 12 banks & factoring companies
Functionality analysis of 12 banks & factoring companies
9Digital Factoring for SMEs - CEE 2020

10. Online Banking for SMEs - CEE 2019
Methodology
10
Scope:
12 banks &
Factoring
companies
Analysis of 12 banks &
factoring companies in the
CEE region having
factoring product for SMEs
(from the following
countries: Poland,
Romania, Latvia, Turkey)
Only online
Only factoring products
available online (SMEs
can apply online) were
covered in this Study
17 parameters
Analysis and
comparison was
carried out within 17
parameters
No UX-audit
A UX-audit
was not done
Digital Factoring for SMEs - CEE 2020

11. WHO WE ARE
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Established in 2010
Professional focus on financial services for micro, small and
medium enterprises
Regional focus on Central & Eastern Europe, CIS and the Caucasus
Members include commercial banks; business partners – international
financial institutions, IT providers, consultant companies

12. Request Full Study
Olena Gryniuk
Regional Director
CEE countries
+48733404985
cee@smebanking.club