Factoring in the 21st Century

Size: px
Start display at page:

Download "Factoring in the 21st Century"

Transcription

1 Factoring in the 21st Century The economic relevance of factoring and trade finance in Europe May 2013

2 1. What is factoring? 2. Who are factoring clients? 3. European factoring market and future trends 4. The EU Federation for the Factoring and Commercial Finance Industry 2

3 1 What is factoring? 3

4 1. What is factoring? The cycle of factoring Terminology The Factor is a financial entity providing Factoring facilities Factoring Client The Factoring Client is a supplier business which has a contractual relationship with a Factor or an Asset based lender. The Debtor (Buyer) is a business that has been supplied with goods or services by the Client and is obliged to make payment for them. An Assignment is the transfer of Receivables from the Assignor to the Assignee Debtor (Buyer) Credit assessment Factor The Assignor is the entity disposing of an asset by an Assignment The Assignee is the entity to which a Receivable is assigned Harmonized terms of the European Factoring and Commercial Finance Industry can be found in the EUF Glossary 4

5 1. What is factoring? The three functions of factoring Purchase of receivables Factor takes on the risk of debtor s default Management of receivables and debt collection Financing function Safeguarding function Servicing function 5

6 1. What is factoring? Main types of factoring Full-Service Factoring Maturity Factoring Non-Recourse Factoring Recourse Factoring Reverse Factoring (or Supplier Finance) Invoice Dicounting International factoring The Factor provides the Assignor with all the following services: Advance of a percentage of the amount of the receivables assigned; Receivable management and collections; Credit protection. The Assignor receives from the Factor the payment of the receivables on their due date or on a certain, fixed and pre-agreed date The Factor offers a credit protection service, therefore the credit risk of debtor failure remains with the factor. The credit risk of Debtor failure remains with the Assignor (no credit protection service). The agreement is set between the Factor and a (usually strong) Debtor. The Factor offers the Debtor s suppliers the possibility to assign any receivable approved for payment by the Debtor. The Assignor assigns its receivables in exchange for an advance of a percentage of the amount but retain full control of its sales ledger function. Includes Import and Export Factoring, usually performed through the Two Factor System (two Factoring companies connected through an International Organization of Factoring: IFG or FCI) Harmonized terms of the European Factoring and Commercial Finance Industry can be found in the EUF Glossary 6

7 2 Who are factoring clients? 7

8 2. Who are factoring clients? Who are factoring users? Any size Particularly praised by SMEs But also large and major companies Many economic sectors Manufacturing Distribution Services Anywhere in the world Mainly domestic But powerful role in Import-Export (Two Factor System) 8

9 2. Who are factoring clients? What are the benefits for the clients using factoring? Prompt liquidity Financing according to turnover rather than to collateral or track record The focus is not on the factoring client but on its customers Protection against defaults Secured national and international market expansion Outsources administration costs and improves debt collection performance Flexible, it adapts as business grows 9

10 2. Who are factoring clients? A popular form of alternative financing, praised by SMEs Average turnover per client 2011 (million ) Small < 10M Micro < 2M Sources: IFG statistics

11 Source: ABFA, 2011 Source: DFV, Who are factoring clients? Factoring and SMEs, examples of the British and German markets Factoring volumes in relation to total turnover and clients (%) 100,0 90,0 80,0 70,0 91,5 UK, 2011 Germany, ,00 88,19 90,00 80,00 70,00 60,0 50,0 40,0 30,0 20,0 10,0 0,0 40,5 30,4 29,1 7,1 1,4 0-10M 10-50M 50M+ Turnover Clients 60,00 50,00 40,00 30,00 20,00 10,00 0,00 49,23 31,38 19,4 8,44 3, M 10-50M 50M+ 11

12 3 European factoring market and future trends 12

13 3. European factoring market and future trends Evolution of factoring turnover in the EU In recent years, firms and banks reached a better understanding of the benefits of factoring: Sound management of the working capital (from the users point of view) Lower risks and lower capital requirements (from the banks point of view). This evolution contributes to the growth of the factoring market in Europe and should bring it closer to its potential in years to come. Sources: EU national associations, FCI and IFG statistics 13

14 3. European factoring market and future trends Factoring turnover in the EU 601,000 jobs currently supported by factoring in UK, FR, IT and DE Further 282,000 potential jobs to be supported by 2015 if «optimal» usage was made Sources: EU national associations, FCI and IFG statistics Source: GE, «The AR factor» study,

15 4 The EU Federation for the Factoring and Commercial Finance Industry 15

16 4. The EU Federation for the Factoring and Commercial Finance Industry EUF Missions Create a common voice for the European Factoring Industry Support the creation of a more integrated and harmonised framework and a «level-playing field» Build awareness of the funding solutions Factors provide Promote understanding of the potential role of Factoring in supporting businesses, especially but not only SMEs Create a wider opportunity for the Industry to grow 16

17 4. The EU Federation for the Factoring and Commercial Finance Industry EUF Organisation 16 Members 14 National EU associations of Factoring and 2 International Organizations of Factoring Independent Chairman: John Gielen Executive Committee Independent Coordinator: John Brehcist Legal Committee Economics and Statistics Committee Accounting Working Group 17

18 Contact information: EU Federation for the Factoring and Commercial Finance Industry c/o IFG Secretariat Avenue Reine Astrid 452 B-1950 Kraainem BELGIUM 18

THE EUF GLOSSARY ON FACTORING AND COMMERCIAL FINANCE

THE EUF GLOSSARY ON FACTORING AND COMMERCIAL FINANCE Nom T THE EUF GLOSSARY ON FACTORING AND COMMERCIAL FINANCE Version 1.0 June 2012 A Common Terminology for the Industry The EUF Glossary on Factoring and Commercial Finance wishes to contribute to the establishment

More information

EUF STATISTICS. 31 December 2013

EUF STATISTICS. 31 December 2013 . ESTIMATES OF EU TURNOVER VOLUMES. Turnover volumes by product, allocation and notification (Estimates of EU s, Millions of ) Estimate of the EU % on Turnover Significance of the sample on total turnover

More information

The Receivables Finance Industry

The Receivables Finance Industry Want to take part? The International Factors Group is the trade association that fully represents and promotes the interests of the factoring, invoice financing and asset based lending industry on a global

More information

PZF 3 rd International Factoring Congress Warsaw. Outlook on the future of International Factoring and the EUF JOHN GIELEN Independent Chairman EUF

PZF 3 rd International Factoring Congress Warsaw. Outlook on the future of International Factoring and the EUF JOHN GIELEN Independent Chairman EUF PZF 3 rd International Factoring Congress Warsaw Outlook on the future of International Factoring and the EUF JOHN GIELEN Independent Chairman EUF The Future of International Factoring Success depends

More information

The Factoring Industry Worldwide & The Role of International Factoring

The Factoring Industry Worldwide & The Role of International Factoring The Factoring Industry Worldwide & The Role of International Factoring Erik Timmermans Secretary General IFG 1 Factoring Basics The Factoring Company provides flexible finance against the assignment of

More information

The World of Factoring

The World of Factoring The World of Factoring Key Figures & Trends Challenges & Opportunities Important initiatives Erik Timmermans, rep. Secretary General IFG Warsaw 19 Sep 2013 Commercial Finance Today Asset Based Lending

More information

The World of (International)Factoring

The World of (International)Factoring The World of (International)Factoring Facts & Figures Different Products The Two-Factor System The Role of IFG Erik Timmermans Secretary General IFG 1 Evolution of World Factoring Turnover 1980 : +/- 50

More information

Factoring as an Alternative Trade Finance Instrument in a Competitive World

Factoring as an Alternative Trade Finance Instrument in a Competitive World Factoring as an Alternative Trade Finance Instrument in a Competitive World 22 November2013 Peter Brinsley Director, POINT FORWARD LTD Peter Brinsley - credentials 21 years in factoring Now a freelance

More information

First column=preferred terms. Bold and italics signifies other defined terms. Bold signifies alternate terms used.

First column=preferred terms. Bold and italics signifies other defined terms. Bold signifies alternate terms used. First column=preferred terms. Bold and italics signifies other defined terms. Bold signifies alternate terms used. 1= Governance; 2=Facilities and Products; 3 Charges; 4 Legal terms and security arrangements;

More information

Sustainable financing solutions at times of crisis How to finance your business through factoring? Bucharest, October the 6-th, 2009

Sustainable financing solutions at times of crisis How to finance your business through factoring? Bucharest, October the 6-th, 2009 Sustainable financing solutions at times of crisis How to finance your business through factoring? Bucharest, October the 6-th, 2009 Dan Stoica, RomFactor 1 Agenda What is happening with companies in the

More information

EXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1

EXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1 EXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1 FACTORING Factoring is a financial transaction whereby a company sells its receivables to a Third Party (Factoring Company) at a discounted rate. Not a loan

More information

Incisive Business Guide to Factoring

Incisive Business Guide to Factoring Incisive Guide to Factoring Factoring Guide Summary This guide from Incisive outlines the features and benefits for your business from using factoring and invoice discounting services. Factoring is commonly

More information

EDITOR: DR. ULRICH BRINK, BETTE WESTENBERGER BRINK RECHTSANWÄLTE, MAINZ (GERMANY) EDITOR S NOTE

EDITOR: DR. ULRICH BRINK, BETTE WESTENBERGER BRINK RECHTSANWÄLTE, MAINZ (GERMANY) EDITOR S NOTE FACTORING MODEL LAW PREPARED BY THE LEGAL COMMITTEE OF INTERNATIONAL FACTORS GROUP CHAIRMAN: MR. CORNELIU ROBU (MS MICHÈLE CARDOENS - DR ULRICH BRINK - MR PETER KLAUS, MR DIETER HARDT - MR ERIK TIMMERMANS)

More information

Factoring, reverse factoring and other tools for access to finance. Ivor Istuk. Friday, 22 November 2013

Factoring, reverse factoring and other tools for access to finance. Ivor Istuk. Friday, 22 November 2013 Factoring, reverse factoring and other tools for access to finance Ivor Istuk Friday, 22 November 2013 OUTLINE Outline of presentation 1. Problem of late payments 2. Factoring good mitigation tool Defining

More information

NATURE OF FACTORING. www.factors-chain.com/home www.factoring.org

NATURE OF FACTORING. www.factors-chain.com/home www.factoring.org NATURE OF FACTORING www.factors-chain.com/home www.factoring.org A US DEFINITION: a continuing arrangement between a factoring concern and the seller of goods or services on open account, pursuant to which

More information

The AR Factor. The economic value of Accounts Receivable Finance to Europe s leading economies October 2011

The AR Factor. The economic value of Accounts Receivable Finance to Europe s leading economies October 2011 The AR Factor The economic value of Accounts Receivable Finance to Europe s leading economies October 2011 Executive Summary The purpose of this report is to assess the benefits that Accounts Receivable

More information

Factoring in Turkey. Çağatay Baydar General Manager of TEB Faktoring A.Ş. Vice Chairman of FCI

Factoring in Turkey. Çağatay Baydar General Manager of TEB Faktoring A.Ş. Vice Chairman of FCI Factoring in Turkey Çağatay Baydar General Manager of TEB Faktoring A.Ş. Vice Chairman of FCI Factoring in Turkey First factoring company established in 1990 Today; around 75 factoring companies Minimum

More information

Understanding Invoice Finance

Understanding Invoice Finance Understanding Invoice Finance Introduction John Mackey Senior Business Development Manager Ronan Horgan Managing Director Content What is Invoice Finance? Industry Background Who can avail of Invoice Finance?

More information

International Factoring. Milan, 2014

International Factoring. Milan, 2014 International Factoring Milan, 2014 Agenda UBI FACTOR What is Factoring International Factoring Differences between Factoring and Banking Mutual Benefits 2 A Leader in the Italian and European Factoring

More information

CIRCULAR 4800. 3 November 2015. IFG Asia Seminar in Hong Kong

CIRCULAR 4800. 3 November 2015. IFG Asia Seminar in Hong Kong CIRCULAR 4800 3 November 2015 IFG Asia Seminar in Hong Kong As we announced last week, FCI will enter into a Union with IFG and all of their members will become members under FCI s legal structure effective

More information

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES Minaxi Rani Assistant Professor (Extn.), Department of Commerce, Govt. College for women P.G. College, Hisar, Haryana, (India) ABSTRACT

More information

International Conference On Factoring And Other Receivables Finance Products

International Conference On Factoring And Other Receivables Finance Products WITH THE KIND SPONSORING OF: IFG REGIONAL CONFERENCE: Regional Conference on Factoring in Asia International Conference On Factoring And Other Receivables Finance Products Hong Kong / Tuesday, 24 November

More information

THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN

THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN WORKSHOP: EUROPEAN SUPPLY CHAIN FORUM EINDHOVEN UNIVERSITY OF TECHNOLOGY NOVEMBER 2013 By DIRK E. DRIESSENS MAE, MBA 1 The Solutions to Finance Working Capital

More information

The Introduction of Factoring in the FYROM Market EMBA Business Project

The Introduction of Factoring in the FYROM Market EMBA Business Project 2015 The Introduction of Factoring in the FYROM Market EMBA Business Project This paper represents an effort in setting the basis for factoring development in the FYROM market, through determining the

More information

Object: DG FISMA Consultation paper on further considerations for the implementation of the NSFR in the EU

Object: DG FISMA Consultation paper on further considerations for the implementation of the NSFR in the EU To: European Commission Directorate-General for Financial Stability, Financial Services and Capital Markets Union Kraainem, 24 June 2016 Object: DG FISMA Consultation paper on further considerations for

More information

Contents: PRC Committee Peter Mulroy, Chairman of the PRC Committee. The EU Federation for the Factoring and Commercial Finance Industry

Contents: PRC Committee Peter Mulroy, Chairman of the PRC Committee. The EU Federation for the Factoring and Commercial Finance Industry NEWSLETTER / MAY 2015 / ISSUE 9 Connecting and Supporting the Commercial Finance Industry Worldwide Contents: Welcome John Gielen, EUF Independent Chairman Unlocking funding for European Businesses Magdalena

More information

Factoring Legislation and Regulation. Douala, Cameroon 22nd November 2013

Factoring Legislation and Regulation. Douala, Cameroon 22nd November 2013 Factoring Legislation and Regulation Douala, Cameroon 22nd November 2013 Definition Legislation o A law or set of laws made by a governing body Regulation o Rules or directives made and maintained by an

More information

Market analysis on Factoring in EU 25+2

Market analysis on Factoring in EU 25+2 EIF Project "Jeremie" General Report on Factoring 1 Market analysis on Factoring in EU 25+2 prepared by International Factors Group (IFG) for European Investment Fund (EIF) project JEREMIE Preliminary

More information

IFG Manifesto CONNECT. EDUCATE. INFLUENCE.

IFG Manifesto CONNECT. EDUCATE. INFLUENCE. IFG Manifesto 1. We aim to create the international representative body for Factoring and Commercial Finance in both emerging and established markets worldwide. 2. Our global network facilitates trade,

More information

B. Bibby Barometer Small Business Survey findings:

B. Bibby Barometer Small Business Survey findings: A. Research structure: Q & A for Bibby Barometer findings 1. Who did the research? The Bibby Barometer Small Business Survey was conducted by Galaxy Research - a well-known Australian research company.

More information

Meaning & Definitions Aspect of Credit Management Objectives of Accounts Receivables Management Advantages of Trade Debtors Management Costs of

Meaning & Definitions Aspect of Credit Management Objectives of Accounts Receivables Management Advantages of Trade Debtors Management Costs of Management of Accounts Receivable Meaning & Definitions Aspect of Credit Management Objectives of Accounts Receivables Management Advantages of Trade Debtors Management Costs of Maintaining Accounts Receivables

More information

First EU Factoring and Commercial Finance Summit

First EU Factoring and Commercial Finance Summit A JOINT INITIATIVE BETWEEN IFG FCI EUF First EU Factoring and Commercial Finance Summit Brussels, Belgium / 27 January 2015 WITH THE KIND SPONSORING OF: Meet key EU decision makers, Members of EU Parlement,

More information

Factoring financing alternative for SMEs

Factoring financing alternative for SMEs Factoring financing alternative for SMEs Laura Giurca Vasilescu Faculty of Economy and Business Administration University of Craiova, Romania laura_giurca_vasilescu@yahoo.com Abstract Financing is necessary

More information

Receivables Finance International 2006 Madrid 16.03.2006

Receivables Finance International 2006 Madrid 16.03.2006 Receivables Finance International 2006 Madrid 16.03.2006 Breathing new life into the German factoring market Klaus Taube General Manager EUROFACTOR AG Crédit Agricole Group 1 Premier partner for receivable

More information

Factoring is emerging as a short-term financial solution for business The role of FCI

Factoring is emerging as a short-term financial solution for business The role of FCI Factoring is emerging as a short-term financial solution for business The role of FCI Daniela Bonzanini Chairman of Factor Chain International Torino, 10 June 2015 1 Factoring Spreading its Wings! GLOBAL

More information

Contents: PRC Committee Update Peter Mulroy, Chairman of the PRC Committee. The EU Federation for the Factoring and Commercial Finance Industry

Contents: PRC Committee Update Peter Mulroy, Chairman of the PRC Committee. The EU Federation for the Factoring and Commercial Finance Industry NEWSLETTER / NOVEMBER 2015 / Connecting and Supporting the Commercial Finance Industry Worldwide Contents: Welcome John Gielen, EUF Independent Chairman The European Passport: Should the requirements be

More information

Understanding Invoice Finance

Understanding Invoice Finance Understanding Invoice Finance Agenda Introduction ABFA Jargon Busting What is Invoice Finance Factoring Invoice Discounting Invoice Finance Products Who uses Invoice Finance? Main terms Advantages & Disadvantages

More information

Legal Updates. Legal Issues on factoring business in India. Nidhi Bothra nidhi@vinodkothari.com. Vinod Kothari & Company

Legal Updates. Legal Issues on factoring business in India. Nidhi Bothra nidhi@vinodkothari.com. Vinod Kothari & Company Vinod Kothari & Company Legal Issues on factoring business in India Nidhi Bothra nidhi@vinodkothari.com Vinod Kothari & Company Credit Factoring or simply factoring is an asset backed means of financing

More information

INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS

INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS Finances - Accounting INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS Assoc. Prof. Ph.D Giurc Vasilescu Laura University of Craiova Faculty of Economy and Business Administration, Craiova,

More information

LESSON 13: FACTORING THEORETICAL FRAMEWORK

LESSON 13: FACTORING THEORETICAL FRAMEWORK LESSON 13: FACTORING THEORETICAL FRAMEWORK Lesson Objectives To understand the Concept of Factoring. Methodology of Factoring and Forfeiting. Types of factoring. Introduction Receivables constitute a significant

More information

Regional Conference on Factoring in Asia

Regional Conference on Factoring in Asia IFG REGIONAL CONFERENCE: Regional Conference on Factoring in Asia International Conference On Factoring And Other Receivables Finance Products Singapore / Tuesday, 28 October 2014 Factoring continues to

More information

Italian Factoring Market: An Almost Success Story

Italian Factoring Market: An Almost Success Story Italian Factoring Market: An Almost Success Story Rony Hamaui CEO Mediofactoring Milan February 2009 The Italian Market is Large. Turnover 2007 Billion of EUR 400 300 286 200 100 0 123 122 97 89 84 78

More information

PRESENTATION ON FACTORING BY GLOBAL TRADE FINANCE LIMITED 19.06.2007. Global Trade Finance Ltd

PRESENTATION ON FACTORING BY GLOBAL TRADE FINANCE LIMITED 19.06.2007. Global Trade Finance Ltd PRESENTATION ON FACTORING BY GLOBAL TRADE FINANCE LIMITED 19.06.2007 o Incorporated in March 2001 o o o o ABOUT GTF India s first International Factoring Company RBI has accorded registration and Authorised

More information

Discounting, Factoring & Forfeiting

Discounting, Factoring & Forfeiting Discounting, Factoring & Forfeiting Introduction Bill Discounting Factoring- Meaning & Definition Modus Operandi Terms of Agreement Functions Types of Factoring Factoring Vs Discounting Cost of Factoring

More information

To enable highly rated corporate borrowers to diversify their sources of short term borrowings.

To enable highly rated corporate borrowers to diversify their sources of short term borrowings. COMMERCIAL PAPER (CP) CP is an unsecured money market instrument issued in the form of a Promissory Note and was introduced in 1990. Can now be issued in Dematerialised form. To enable highly rated corporate

More information

Xynergy Commercial Capital LLC

Xynergy Commercial Capital LLC Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay

More information

FACTORING AND FORFEITING. the faster way to get your money

FACTORING AND FORFEITING. the faster way to get your money FACTORING AND FORFEITING the faster way to get your money 3 CONTENTS FACTORING 4 DOMESTIC FACTORING 5 1. Supplier s factoring (Reverse factoring) 5 2. Selective factoring with right of recourse 6 3. Individual

More information

ASF Commission Affacturage 02/08/2011 BUSINESS JUSTIFICATION

ASF Commission Affacturage 02/08/2011 BUSINESS JUSTIFICATION BUSINESS JUSTIFICATION FOR THE DEVELOPMENT OF NEW ISO 20022 FINANCIAL REPOSITORY ITEMS A. Name of the request: Messages set for factoring services B. Submitting organisation: Association française des

More information

Subject. PAPER No. : Financial Management MODULE No. : Factoring services

Subject. PAPER No. : Financial Management MODULE No. : Factoring services Subject Paper No. and Title Module No. and Title Module Tag Paper No.8: Financial Management Module No. 36: Factoring services COM_P8_M36 TABLE OF CONTENTS 1. Learning outcomes 2. Introduction 3. Mode

More information

The Evolution of Factoring: New Competition for B2B Payments

The Evolution of Factoring: New Competition for B2B Payments The Evolution of Factoring: New Competition for B2B Payments Presented by Sarsha Adrian, Senior Consultant Graber Associates LLC 1 Graber Associates LLC Founded in 2002 Financial Services and Technology

More information

Factoring and Forfaiting

Factoring and Forfaiting Factoring and Forfaiting -A fund/fee based financial service Prof. Nishant Dhruv, What is Factoring? Definition: Factoring provides resources to finance receivables as well as facilitates the collection

More information

East Lancashire Chamber of Commerce International Trade Club - 20 July 2010

East Lancashire Chamber of Commerce International Trade Club - 20 July 2010 East Lancashire Chamber of Commerce International Trade Club - 20 July 2010 Export Finance & Introducing Chamber Invoice Finance Nigel Mills Director Strategic Markets Nigel Crosse Head of International

More information

Contemporary Logistics. Two-factor Export Factoring: Optimal Option for Export-oriented SMEs Financing

Contemporary Logistics. Two-factor Export Factoring: Optimal Option for Export-oriented SMEs Financing Contemporary Logistics 06 (2012) 1838-739X Contents lists available at SEI Contemporary Logistics Journal homepage: www.seiofbluemountain.com Two-factor Export Factoring: Optimal Option for Export-oriented

More information

Bill Discounting. Exporter. Importer BANKING AND TRADE FINANCE TUTORIAL. Importer s Bank. Exporters Bank INDIA FOREX ADVISORS.

Bill Discounting. Exporter. Importer BANKING AND TRADE FINANCE TUTORIAL. Importer s Bank. Exporters Bank INDIA FOREX ADVISORS. Bill Discounting While discounting a bill, the Bank purchases the bill receivable to the Exporter (i.e. Bill of Exchange or Promissory Note) before its due date and credits the value of the bill to the

More information

Credit insurance supports companies profitable growth

Credit insurance supports companies profitable growth Credit insurance supports companies profitable growth An independent research study of 2,000 businesses in 10 European economies Background. During the first semester of 2006, the Credit Management Research

More information

SBA EXPORT LOAN PROGRAMS

SBA EXPORT LOAN PROGRAMS SBA EXPORT LOAN PROGRAMS Patrick Hayes, Regional Manager SBA Export Solutions Group U.S. Export Assistance Center 600 Superior Avenue, Suite 700 Cleveland, OH 44114-216-522-4731 patrick.hayes@sba.gov National

More information

Factoring: A n Effective Financing Option to SMEs in China

Factoring: A n Effective Financing Option to SMEs in China Factoring: A n Effective Financing Option to SMEs in China FENG Yue Economics and Management Department, Nanjing Institute of Technology, P.R.China, 211167 fengyue@njit.edu.cn Abstract: Factoring is a

More information

Flexibility in Assignment of Contractual Rights: Assignment of Account Receivables

Flexibility in Assignment of Contractual Rights: Assignment of Account Receivables Flexibility in Assignment of Contractual Rights: Assignment of Account Receivables LINGYUN GAO 1 One significant aspect of contract flexibility is the ability of contracting parties to transfer their rights

More information

FACTORING. Net Advantage of factoring = Rs.(2,15,753 2,00,000) = Rs.15,753 Decision: As there is net savings, factoring is preferable.

FACTORING. Net Advantage of factoring = Rs.(2,15,753 2,00,000) = Rs.15,753 Decision: As there is net savings, factoring is preferable. FACTORING Pen Pusher FACT1 A company is considering engaging a factor. The following information is available: a) The current average collection period for the company s debtor is 80 days. ½% of debtors

More information

FINAL REPORT GREATER LONDON ENTERPRISE LTD PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408

FINAL REPORT GREATER LONDON ENTERPRISE LTD PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408 Ref. Ares(2014)78096-15/01/2014 PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408 FINAL REPORT GREATER LONDON ENTERPRISE LTD CONTENTS PAGE NO. 1.Background

More information

With the kind cooperation of AFSA

With the kind cooperation of AFSA With the kind cooperation of AFSA Manila, Philippines Thursday, 19 April 2012 Regional Conference on Factoring in Asia Invitation 1 IFG invites you to the 2012 Regional Conference on Factoring in Asia,

More information

FACTORING LAW I. BASIC PROVISIONS II. DEFINITIONS

FACTORING LAW I. BASIC PROVISIONS II. DEFINITIONS FACTORING LAW I. BASIC PROVISIONS Article 1 This Law governs the concept and subjects of factoring; parties to factoring; conditions and manner of providing factoring services; types of factoring; rights

More information

Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources

Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources What is Invoice Finance? Many businesses these days can be well run and fundamentally sound, yet constantly suffer

More information

International Factors Group Model Law of Factoring

International Factors Group Model Law of Factoring Afreximbank Conference - Lusaka Regulatory and Legal Aspects of Factoring & International Factors Group Model Law of Factoring Edward Wilde Solicitor with Squire Patton Boggs Financial Services Team London

More information

Factoring and Commercial Finance. A Whitepaper. The EU Federation for the Factoring and Commercial Finance Industry

Factoring and Commercial Finance. A Whitepaper. The EU Federation for the Factoring and Commercial Finance Industry Factoring and Commercial Finance A Whitepaper The EU Federation for the Factoring and Commercial Finance Industry January 2016 Contents Executive Summary 3 Part One: 4 The European Factoring and Commercial

More information

Trends in Trade Finance: an international perspective. www.axial.net

Trends in Trade Finance: an international perspective. www.axial.net Trends in Trade Finance: an international perspective www.axial.net Trade Finance 101 Trade Finance is transac-on based financing for sales of goods and services between companies (o9en interna-onally)

More information

Laurent De Coster Head of Sales Management Factoring, more than just a financing solution

Laurent De Coster Head of Sales Management Factoring, more than just a financing solution ING Commercial Finance BeLux Laurent De Coster Head of Sales Management Factoring, more than just a financing solution Contents Inhoud Introduction Factoring market evolution Factoring in Europe Products

More information

PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408 FINAL REPORT GREATER LONDON ENTERPRISE LTD

PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408 FINAL REPORT GREATER LONDON ENTERPRISE LTD PROJECT TITLE: ANALYSIS OF USE OF FACTORING DG ENTERPRISE ACCESS TO FINANCE UNIT ETD/00/503408 FINAL REPORT GREATER LONDON ENTERPRISE LTD CONTENTS PAGE NO. 1.Background to the Study 1 1.1 Introduction

More information

Discounting. Factoring & Forfeiting Summary

Discounting. Factoring & Forfeiting Summary Chapter 7 Discounting. Factoring & Forfeiting Summary The financial service sector is developing at rapid pace in India. This is just because of the emerging needs of the economy. Many innovative schemes

More information

Leasing and Factoring for SME Finance

Leasing and Factoring for SME Finance Leasing and Factoring for SME Finance ADBI Seminar on SME Finance May 2006 Yasuo IZUMI 1 The v iews expressed in this paper are the v iews of the author and do not necessarily reflect the views or policies

More information

The Working Capital Cycle in International Trade September 2013. Copyright The Institute of Export and International Trade 2013

The Working Capital Cycle in International Trade September 2013. Copyright The Institute of Export and International Trade 2013 The Working Capital Cycle in International Trade September 2013 Copyright The Institute of Export and International Trade 2013 1 Contents Finance During the Business Lifecycle The Working Capital Cycle

More information

CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING

CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING Q.1 Explain the objective of credit policy? What is an optimum credit policy? Discuss. A.1 The objective of credit policy is to promote sales up to that

More information

for Your Business Providing working capital for business

for Your Business Providing working capital for business The Cost-Effective Cash Flow Solution for Your Business Providing working capital for business Your invoices represent one of your most valuable business assets however, until they are paid, they are not

More information

Your guide to our services

Your guide to our services Your guide to our services Working together to help your clients Bibby Financial Services works with a strong and diverse network of financial intermediaries, such as finance brokers, insolvency practitioners,

More information

ASF: The French Association of Specialised Finance Companies

ASF: The French Association of Specialised Finance Companies ASF: The French Association of Specialised Finance Companies Created under the regulatory framework of the banking act of 24 January 1984, the ASF (the French Association of Specialised Finance Companies)

More information

INVESTING IN EUROPEAN SME TRADE RECEIVABLES. Secure, Profitable and Socially Responsible

INVESTING IN EUROPEAN SME TRADE RECEIVABLES. Secure, Profitable and Socially Responsible INVESTING IN EUROPEAN SME TRADE RECEIVABLES Secure, Profitable and Socially Responsible 1 INFORMATION TO SUPPORT YOUR DECISION TO INVEST The investing in KoalaFund is only available to professional and

More information

UNIDROIT CONVENTION ON INTERNATIONAL FACTORING (Ottawa, 1988) Explanatory Note by the UNIDROIT Secretariat

UNIDROIT CONVENTION ON INTERNATIONAL FACTORING (Ottawa, 1988) Explanatory Note by the UNIDROIT Secretariat 1 UNIDROIT CONVENTION ON INTERNATIONAL FACTORING (Ottawa, 1988) Explanatory Note by the UNIDROIT Secretariat I. BACKGROUND 1. Although the origins of factoring date back to antiquity, and the institution

More information

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO JUNE 2014

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO JUNE 2014 ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO JUNE 214 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3 2.3. Analysis of sole lender and syndicate

More information

Apple Capital Group, Inc.

Apple Capital Group, Inc. COMMERCIAL FINANCE Commercial finance typical revolves around what are considered the assets of your business and are often called "asset based loans". The assets of your business are things such as your

More information

Peter Brinsley Director, Point Forward Ltd PZF Congress, 17 September 2015

Peter Brinsley Director, Point Forward Ltd PZF Congress, 17 September 2015 + New brands / instruments in Receivables Finance Peter Brinsley Director, Point Forward Ltd PZF Congress, 17 September 2015 + Receivables Finance Supply Chain Finance Forfaiting Factoring Trade Receivables

More information

Propelling factoring businesses enterprise wide. Your factoring solution ready to go KAPPS. KAPPS Consulting Pte. Ltd.

Propelling factoring businesses enterprise wide. Your factoring solution ready to go KAPPS. KAPPS Consulting Pte. Ltd. Propelling factoring businesses enterprise wide Your factoring solution ready to go KAPPS KAPPS Consulting Pte. Ltd. KAPPS Consulting Pte. Ltd. KAPPS Consulting is the center for translating business and

More information

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management Cost of Credit How much is customer credit REALLY costing your business? Tips & advice for effective credit management Group UK The best advice any business can follow to ensure they do not experience

More information

Factoring & Forfaiting

Factoring & Forfaiting Factoring & Forfaiting A business and regulatory perspective June 2009 t Table of Contents 1. Executive Summary... 5 2. Factoring & Forfaiting... 6 2.1. Factoring... 6 2.2. Forfaiting... 13 3. Intrinsic

More information

Movables Finance: Concepts, Key Elements, and Structuring

Movables Finance: Concepts, Key Elements, and Structuring Movables Finance: Concepts, Key Elements, and Structuring Jinchang Lai Principal Operations Officer, and Lead for Financial Infrastructure, Finance & Markets, World Bank Group Rabat, September 25, 2014

More information

Promotion and Development of Factoring in Africa: Towards a Facilitative Legal and Regulatory Environment"

Promotion and Development of Factoring in Africa: Towards a Facilitative Legal and Regulatory Environment Promotion and Development of Factoring in Africa: Towards a Facilitative Legal and Regulatory Environment" Implementation of a Factoring Law in Africa The case of South Africa Presenter: Nick Hough CEO

More information

Re: EBA CONSULTATION PAPER ON THE APPLICATION OF THE DEFINITION OF DEFAULT

Re: EBA CONSULTATION PAPER ON THE APPLICATION OF THE DEFINITION OF DEFAULT To: The European Banking Authority Kraainem, 21 January 2016 Réf: EUF/16-01 Re: EBA CONSULTATION PAPER ON THE APPLICATION OF THE DEFINITION OF DEFAULT Dear Madam or Sir, The (EUF) is a trade association

More information

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO MARCH 2015

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO MARCH 2015 ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO MARCH 21 Asset Based Finance Association MARCH 21 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3

More information

保 理 在 中 国 情 境 下 的 融 资 作 用

保 理 在 中 国 情 境 下 的 融 资 作 用 所 属 领 域 : 资 产 证 券 化 Category: Asset securitization 发 表 语 言 : 英 文 In English 保 理 在 中 国 情 境 下 的 融 资 作 用 The financing role of factoring in China context Shuzhen Chen 1 School of Management, University of

More information

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO SEPTEMBER 2015

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO SEPTEMBER 2015 ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO SEPTEMBER 21 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3 2.3. Analysis of sole lender and syndicate

More information

The Determinants of Global Factoring By Leora Klapper

The Determinants of Global Factoring By Leora Klapper The Determinants of Global Factoring By Leora Klapper Factoring services can be traced historically to Roman times. Closer to our own era, factors arose in England as early as the thirteenth century, as

More information

A Simple Approach to Business Loans and Cash Management

A Simple Approach to Business Loans and Cash Management A Simple Approach to Business Loans and Cash Management Christine Ho Vice President SME Banking 11 February 2009 Operating Cycle Liquidity Liquidity Management Management Working Capital Working Capital

More information

Security Interests in Accounts Receivable and Inventory in Common Law and Civil Law Jurisdictions

Security Interests in Accounts Receivable and Inventory in Common Law and Civil Law Jurisdictions Dedicated To Partnering With Our Clients February 2002 Volume 3 OUR COMMITMENT TO OUR CLIENTS Partnering We are an essential part of our clients success, working every day to enhance our clients business

More information

Chapter 7 Cash and Receivables

Chapter 7 Cash and Receivables Chapter 7 Cash and Receivables QUESTIONS FOR REVIEW OF KEY TOPICS Question 7-1 Cash equivalents usually include negotiable instruments as well as highly liquid investments that have a maturity date no

More information

practical information

practical information practical information hermes cover special Refinancing of officially supported export receivables march 2012 practical information hermes cover special Refinancing of officially supported export receivables

More information

Flashcards for Chapter 6 Introduction to Working Capital Management [ ]

Flashcards for Chapter 6 Introduction to Working Capital Management [ ] Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract

More information

Net cost to business per year (EANCB on 2009 prices)

Net cost to business per year (EANCB on 2009 prices) Title: Measure to nullify ban on assignment clauses in a debtors terms of sale. IA No: Lead department or agency: Department for Business, Innovation and Skills Other departments or agencies: Summary:

More information

FACTORING ACCOUNT RECEIVABLE PDF

FACTORING ACCOUNT RECEIVABLE PDF FACTORING ACCOUNT RECEIVABLE PDF ==> Download: FACTORING ACCOUNT RECEIVABLE PDF FACTORING ACCOUNT RECEIVABLE PDF - Are you searching for Factoring Account Receivable Books? Now, you will be happy that

More information

FINANCING THE FUTURE. New government help for exporters. Tahir Ahmed. emita presentation Loughborough 17 May 2011

FINANCING THE FUTURE. New government help for exporters. Tahir Ahmed. emita presentation Loughborough 17 May 2011 FINANCING THE FUTURE New government help for exporters Tahir Ahmed emita presentation Loughborough 17 May 2011 1 New government help for exporters Chancellor announced in Budget - more support for exporters

More information

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO DECEMBER 2015

ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO DECEMBER 2015 ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO DECEMBER 21 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3 2.3. Analysis of sole lender and syndicate

More information

SBA EXPORT EXPRESS LOAN PROGRAM

SBA EXPORT EXPRESS LOAN PROGRAM SBA EXPORT EXPRESS LOAN PROGRAM Patrick Hayes, Regional Manager SBA Export Solutions Group U.S. Export Assistance Center 600 Superior Avenue, Suite 700 Cleveland, OH 44114-216-522-4731 patrick.hayes@sba.gov

More information