Turkey: Transaction volume in the factoring sector reached ₺200 billion

The transaction volume of the factoring sector, the majority of which are SMEs and serving more than 80 thousand customers, increased by 34.2% in 2021 and reached ₺200 billion. The sector supported the fight against the informal economy by preventing 1.1 million risky transactions with the Central Invoice Recording System.

Used by a wide range of companies, from Turkey’s largest industrial establishments to SMEs, the driving force of the economy, factoring enables companies to access cost-effective financing with their own trade receivables. Factoring, which is defined as the transfer of term receivables arising from the sale of goods and services to a factoring company through assignment and the management of these receivables by the factoring company, offers three services that can be classified as guarantee, collection and financing, together or separately, depending on the needs of the parties.


With 52 factoring companies operating in the sector, nearly 350 branches and more than four thousand employees, it serves the real sector, exporting companies and more than eighty thousand customers, mostly SMEs. Factoring companies, besides the companies they serve, also evaluate the receivables they take over and ensure that their customers can access the guarantee, collection and financing solutions they need as soon as possible.


According to the data of the Association of Financial Institutions (FKB), factoring transaction volume increased by more than 34% compared to 2020, from ₺149 billion to ₺200 billion, according to the 2021 year-end consolidated data of the sector. Asset size increased from ₺48 billion to ₺65 billion with an increase of 35%, while the receivables item increased by more than 33% and exceeded ₺59 billion. In the sectoral distribution of factoring transactions, the wholesale and retail trade motor vehicles service sector, which increased its share from 22% to 23.2% compared to 2020, takes the first place. Compared to 2020, the share of the textile and textile products sector increased from 8% to 9.5%, the construction sector increased from 7% to 8.3%, and the metal main industry and processed material production sector increased its share from 4.5% to 6.3%.


The Central Invoice Recording System (MFKS), which was established by FKB in 2015, supported the fight against the informal economy by preventing the repetitive assignment and financing of the same commercial receivable. In the MFKS, a total of 78 financial institutions, including all factoring companies in Turkey and 26 banks representing the majority of the banking sector, record all kinds of documents and information regarding the receivables subject to factoring transactions, More than 1.1 million risky transactions were prevented as of the end of 2021, thanks to controls such as duplication and overpayment made during registration.


In the MFKS, which works integrated with the Revenue Administration (GIB) e-document system and simultaneously confirms the accuracy of e-invoices and other e-documents from the Revenue Administration, The e-document rate, which was 23% in 2015 when it was founded, increased to 93% by the end of 2021.

In addition, the annual invoice registration to the MFKS, where 5.5 million receivables documents amounting to ₺123.2 billion were entered in 2015, continued to increase and reached 35 million documents with a total amount of ₺1 trillion 155 billion by the end of 2021.


The trade volume of the companies on the buyer and seller side increases.

Firms’ futures shopping opportunities increase.

Companies get rid of the workload of buyers and sellers in terms of commercial transactions such as tracking, collection and registration.

The growth of the companies is realized by commercial sales instead of external resources, and the resources are used optimally.

The company transaction records of the companies decrease. Because the invoice and accounting records are made by the factor.

It simplifies the balance sheets of companies. Stocks, receivables, debts decrease, balance sheets become liquid.

Since the balance sheets of companies are liquid, their balance sheet ratings increase, and they become advantageous in financial markets in terms of both reputation and costs.

On the import and export side, risks such as exchange rate, political problems and transfer are eliminated, since all risks are assumed by the factor.

It provides information about buyers in different countries and easy access to buyers in export transactions.


Supply Chain Finance is one of the leading factoring products that have increased their volume rapidly in the world and in Turkey in the last few years. With Supply Chain Financing, supplier SMEs can pre-finance their trade at an affordable cost, without waiting for the maturity period determined by large buyers, benefiting from the creditworthiness of the buyers, without the need for additional collateral, providing themselves with resources for the production process and creating working capital. With the developing technology and the digitalization vision of the industry, the Trade Chain Finance System (TZFS), which was implemented in 2019 under the umbrella of FKB, plays an important role in delivering both the trade chain finance product and other factoring products to large audiences. TZFS enables SMEs, which form the basis of the economy, to access finance more quickly, safely and cheaply, with the transfer of receivables to be made in electronic environment and the confirmation received from mostly large-scale buyer companies.

Source: Sabah / Translated by Irem Yildiz

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