In 2019, even though there was an upward trend in the general development of factoring, Central and Eastern Europe (CEE) in certain witnessed unprecedented development in ABF. Praveen Sinha, Founder of one of the only seven RBI-registered NBFCs in the factoring business enterprise —PinCap, mentioned that CEE’s ABF is expanding, owing to its dynamic banking industry. “There has been a general upward growth trend globally since the past few years. However, CCE witnessed the largest increase in the growth of the ABF market due to its highly advanced banking system. If you will analyze the nations that have well-developed factoring sector, the credit goes to their dynamic banking systems.” 
Forwarding his theory of the expansion of factoring business enterprise with the advancement of the country’s baking program, in the context of India, he says, “Recently, the Indian baking system has grown to become much more efficient than what we had a decade or two decades earlier. The present political regime is committed to make the banking system even more efficient and dynamic. The Factoring Regulation (Amendment) Bill, 2020, is a clear indication of the intentions of this government” 
France, which is the world’s second-biggest factoring industry soon after the US, is enabling speedy development of its GDP by assisting the nation’s SME sector via ABF. France homes more than 4 million SMEs, employing more than 48 % of the total workforce and contributing about 55 % of the country’s GDP. It is vital to note that a sturdy factoring structure has enabled the speedy development of SMEs and the GDP of France at substantial. In India, there are about 63 million MSMEs contributing about 30 % of the national GDP and employing at least 33 % of the total employment. While the French factoring industry stood at more than 300 billion euros, the Indian factoring industry closed at about 5 billion euros in the year 2019. 
“Factoring enables smooth cash flow for the MSMEs and if you will look at France, a vibrant ABF is one of the main reasons why they have such a good SME sector. On the other hand, we have over 63 million MSMEs and most of them face severe cash flow issues. With only seven NBFCs in India in the factoring business and minimal awareness of how factoring is done, it is a serious toll on our MSMEs and the economy at large. The expansion of factoring was highly required and was a need of the time indeed. This is also an indication that we are going to witness an advanced and dynamic banking system in India in near future. With this Amendment Act, expect MSMEs to become a major contributor to the GDP of India in the coming decade,” says Praveen Sinha.  
However, he also highlighted some of the core concerns that stay unsolved and pose critical hindrances to the development of companies in India. “We must do away with delays in the Indian legal system as it helps fraudulence and discourages people who perform healthy financial practices. The process of recovery by the creditor is so hard that it becomes difficult for NBFCs to resolve conflicts legally, which might hinder them from getting into the factoring business,” concludes Praveen Sinha.