Caja Navarra experiences a 50.29% inter-annual growth rate regarding the management of parafinancial services for businesses
Despite the unfavorable climate, there are a growing number of businesses which use parafinancial services in the management of their companies.
The reason for this is because, in times of crisis, parafinancial services contribute to maintaining liquidity, ensure collections and payments, guarantee fiscal savings and allow for material and machinery to be leased without using company resources.
As a consequence, Caja Navarra’s business in parafinancial services has experienced a 50.29% inter-annual growth rate at the end of July 2010. In this timeframe, the managed volume rose from €441.9 million to €664.1 million at the end of July.
All in all, CAN provides these services to 25,513 companies. The most requested one, which has experienced a 72.80% growth in the past year, is ‘confirming’, a payment management service from one company to its suppliers, which offers the possibility of collecting payment on invoices prior to their payable date. CAN has reached a volume totaling €553.8 million in ‘confirming’.
Other parafinancial instruments are ‘factoring’, an alternative financing service which ensures small and mid-sized businesses payment of pending payments; or ‘leasing’, a rental operation with a purchase option regarding which businesses avoid having to pay the full price of a product (machinery or production goods) from the very beginning.