Coface Romania is expanding regionally by opening a new office in Timisoara
The only Romanian provider of integrated credit risk management services, Coface, continues to expand regionally by opening a new office in Timisoara. With more than 17 years experience in Romania, Coface is now targeting the western part of the country, where we identified a high business potential and a significant segment of active companies.
After opening its first regional office in Cluj-Napoca in 2013, Coface continues its development by launching a new branch, this time in Timisoara, from where a Business Development Manager and a Key Account Manager will perform their activity.
Coface’s choice for the most important urban centre in western Romania was supported by the area’s investment potential, the significant number of active companies and the number of Coface’s existing clients, both in credit insurance and services divisions.
„Coface Romania continues its accelerated growth and as part of our strategy, in addition to the office from Cluj-Napoca, we opened the second regional branch in Timisoara. The main reasons was the fact that we appreciate the business potential in the western area of the country, but we also want to be closer to our existing customers within the region. Our focus is to continually develop ourselves and to provide a greater support to our clients in order to develop and protect their businesses. We are looking forward to a closer support for a lasting and sustainable development of the Banat business environment”,declared Constantin Coman, Country Manager, Coface Romania.
Timisoara and the Western Region’s business potential
Western Region of Romania is one of the most developed regions of the country with high entrepreneurial and investment capacity, with one of the highest values in the country in terms of active firms. Of course, this is due to the geographical proximity to various markets, the area is very attractive for the investors who want to reduce the costs associated with the transportation and assembly of goods imported from other parts of the world and dedicated to exports within Central and Eastern Europe.
From this point of view, Timis County has experienced a strong growth of the investments in recent years, especially foreign ones in the automotive, electronics and appliances industry.
Coface analysis shows that in 2013 for every new company registered nationwide, a total of 2 companies have ceased their activity. Only three regions nationwide are below this average, namely Bucharest, the Southern and the Western areas of Romania.
Among Western counties, Caras Severin and Timis are in the top 10 counties nationwide with fewer companies which reported ceased activities, compared to the number of newly established ones.
From approximately 68,000 active companies with registered offices in the Western part of the country, only 1,800 are giving the financial strength of this area. They generate over 80% of the consolidated turnover at the regional level and about 10% of the national share of companies with a turnover of over 1 MEUR. Of these, Coface has identified a segment of 1,500 companies as business potential for its credit risk management services. 204 companies represent the target market for Credit Insurance, with a turnover of over 10 MEUR, 231 companies with a turnover of 5 to 10 MEUR and 1,389 companies with a turnover of 1 to 5 MEUR.
Over the past year, in this particular area there have been registered 20 companies that ceased their activity to 100 active companies, in line with the average registered at the national level. From this point of view, Caras Severin is positioned very well compared to the national average during 2013 registering only 13 companies with ceased activity at the 100 active companies and an equal number of newly established firms. Timis and Arad rank close to the average registered nationwide.
Despite these favourable circumstances, according to Coface analysis, lately 25% of the companies in the Western area registered a DSO (Days Sales Outstanding) over than the national average (120 days). Moreover, 60% of the active companies pay their bills with delay to suppliers, compared to the average speed of receivables collection and stocks selling. The share of supplier’s in total short-term debt increased from a year to another and companies used the supplier-credit, given that bank credit was more difficult to obtain.
Taken into consideration all this facts, the local presence of a provider of integrated credit risk management services is more than desired. The insurance of receivables collection and the increase dependence of the companies for this source of liquidity has become a growing necessity.
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