These Factors offer businesses (the Sellers) the funding they need to meet day-to-day business expenses, including payments to suppliers, salaries, rent and rates. That’s why the Industry calls it win: win finance! EU Factoring growth since 2007 (in thousands of euros)įactoring and Commercial Finance companies (the Factors) work with client businesses to provide finance to enable them to trade. The EUF’s 2015 Whitepaper showed it to be around four times safer for the financial institution than traditional lending. Not only that, it also is a low loss given default solution. In other words, factoring helps EU Industry to enhance its financial competitiveness, an essential element in allowing it to thrive and compete in domestic, the single and in international markets. Of these users, nearly 90% are Small and Medium sized Enterprises.įactoring can provide higher levels of finance to the user with fewer conditions than comparable traditional methods of funding. The Industry in Europe has grown from €845Bn in 2008 to its current level this growth confirms the important role played by the factoring industry in sustaining liquidity supply to businesses, particularly through a period of financial crisis.Īt the end of 2016, around 200 providers were supporting 180,000 business users and providing them with €200Bn of funding.
That’s €1.5Trillion of client user turnover in Europe, €2.4Trillion in the world. Factoring is a long-established way of providing a range of business support services:Īcross Europe, where it is well established, the Industry represents 10% of GDP globally the figure is around 3.5% and rising.
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