Interview
Duško Prešić: We want to be the X factor for the success of small and medium-sized enterprises
The occasion for today’s conversation is a newly founded factoring company on the BiH market. We therefore decided to seek detailed information from Mr Duško Prešić, co-owner and director of „X faktor“ d.o.o. Banja Luka.
Above all, we will learn about all the advantages of factoring for entrepreneurs. We will also talk a little about the novelties that „X faktor“ will bring to our market.
What was the motive for founding a factoring company?
The owners of „X faktor“ doo Banja Luka are long-time bankers with hundreds of successful projects and hundreds of millions in approved loans in their portfolio. On the other hand, we have clearly been focused for years on developing the small and medium-sized enterprise segment. Listening to the needs of our clients, we concluded that we could use our knowledge, experience and business connections to speed up cash flows in the BiH economy. Even now, at its very founding, „X faktor“ doo is known among small and medium-sized enterprises, because it is represented by an experienced team of financial experts.
What is the mission of „X faktor“ doo Banja Luka?
Our mission is to secure liquidity for small and medium-sized enterprises exactly when they need it — simply, quickly and efficiently. It is clear that today, more than ever, the old saying “time is money” holds true, and I believe that many business opportunities were not realised because at key moments companies did not have liquidity. Now we are here, and we will certainly be a significant factor in accelerating liquidity. Or, as we would say in our company – we want to be the X factor for the success of small and medium-sized enterprises.
What actually is factoring? How can clients obtain working capital?
In principle, factoring is the purchase of receivables that are not yet due. It is easy to explain with an example. If your firm has a receivable from its buyer with a payment term of 90 days, you can sell the receivables to us. We pay you the money less a certain discount, and after 90 days your buyer pays the debt to the factor instead of to you. You have quickly received funds that you can put to further use and earn on many times over in the period in which you would otherwise have been waiting for the payment from your buyer.
The other option is reverse factoring, in which the factor pays your supplier’s invoice instead of your company, and after 30, 60 or 90 days you pay that amount to the factor. Your payment term is aligned with the expected inflows from that or some other job you have done.
To finish, one question everyone likes to ask bankers and finance experts: “Where should one invest money today?”
An excellent question. There are many options, but the right ones are those in which the money does not demand much involvement from you, yet brings a fair return. Money should be entrusted to proven experts who, by investing it correctly, can grow the capital and bring a return to all parties involved in the project. We have several options for this, and I take the liberty of inviting all investors to contact us and talk to us about it.
Certainly, the BH market is richer for one more company that will surely make business easier for entrepreneurs. Besides, this is certainly a refreshment on the financial market, which will surely bring the range of financial services closer to modern European trends.
Source: Finance.ba.