A diagnosis of Fomento Mercantil Sector South of Santa Catarina

Abstract

This paper presents a diagnosis of the factoring sector to encourage market in southern Santa Catarina state, emphasizing the importance of credit in business environment. Considering that companies need to constantly seek credit for investments and meet its obligations, factoring companies emerged in Brazil in 1982 with the objective of providing credit support, marketing and advisory services to small and medium- sized companies. The aim of this study is to highlight the evolution, the performance segments and the prospects of the mercantile promotion companies of the south of Santa Catarina state. To diagnose the sector in the region, 40 questionnaires were applied to promote commercial enterprises in the region and 18 responses were obtained. The companies began to promote commercial activity in the region in 1989 and have presented a quantitative growth. Today Amrec factoring's customers are micro enterprises, small and medium business companies, and the industrial sector is the one which most uses its factoring services. Most companies settled in the region were formed by entrepreneurs who had previously worked in the financial market, and the average age of these firms is 6.81 years. Among the principal factors behind the sector's growth in the region of Amrec, stands out the facility that businesses found in factoring for the granting of credit, increasing credit demand and popularity, where the activity of promoting market had its recognition by society.