The World of (International)Factoring

Size: px
Start display at page:

Download "The World of (International)Factoring"

Transcription

1 The World of (International)Factoring Facts & Figures Different Products The Two-Factor System The Role of IFG Erik Timmermans Secretary General IFG 1

2 Evolution of World Factoring Turnover 1980 : +/- 50 billion 1990 : +/- 200 billion 2000 : +/- 600 billion 2010 : +/ billion = 3,48% of World GDP 2

3 30 years in Factoring % world GDP Bn 600Bn 200Bn 50Bn Opportunity stable positive The industry has grown 4 times faster than the World economy over the last 30 years 3

4 Factoring in the World in 2010 North- America ,2% South- America ,3% Europe (986 EU) 77,5% Africa & Middle East ,35% TOTAL WORLD: billion (+ 21%) Source: IFG GIAR 2010 Asia ,3% Australia & NZ ,3% 4

5 Factoring in Africa Activities in South Africa, Morocco, Tunisia, Egypt Starting in Mena region IFG also members in Mauritania, Mauritius, Sierra Leone Need for improved legal framework to make open account more accepted Huge potential both in Domestic as in International Factoring 5

6 Key Industry Figures (from IFG s Global Industry Activity Report 2010) Turnover 2010 : billion + 21,03 % compared to 2009 Approximately factoring companies But 1200 in USA and 1120 in Brazil... Financed amount at year end : 166 billion Factoring Clients : Factoring Debtors : (rough estimate) Employees :

7 World Market Shares end UK and Ireland : 17,03 % 2. France : 11,36 % 3. Italy : 10,65 % 4. Germany : 9,80 % 5. Japan : 7,30 % 6. Spain : 8,37 % 7. Brazil : 4,73 % 8. USA : 3,93 % (without ABL) 9. Australia : 3,26 % 10. Turkey : 2,89 % 7

8 Market Structure Concentration : combined market share of five biggest factoring companies in each country : on average 87 % Bank dominated: combined market share of Top 5 in each country: 38 % : bank subsidiaries 35 % : bank divisions 14 % : independent finance houses 8

9 Factoring is a patchwork! Differences in legal requirements to operate Differences in legal environments for assignment of receivables Differences in products offered Differences in market segments served Differences in pricing Differences Differences Differences BUT : The Fundamentals for factoring are the same all over the world. 9

10 Type of Products 33% 21% 15% 2% 46% 83% Disclosed With Recourse Disclosed Without Recourse Invoice Discounting Domestic Export Import 10

11 Factoring with Recourse Receivable is financed for a maximum period typically 90 or 120 days = recourse period At end of recourse period factor recovers amount previously advanced - from debtor collections or - by not advancing against new debts 11

12 Non-Recourse Factoring Factor grants a credit limit for each debtor Funding is not withdrawn after specific period Trading in excess of credit limit is at client s risk Factor is protecting the supplier against insolvency of debtor Most factors re-insure with a global insurer (e.g. Atradius, Euler Hermes, COFACE) 12

13 Invoice Discounting Confidential service debtor does not know factor owns the debt No sales ledger management by the factor Factor keeps a control account Collections by the supplier Debtor makes payments to bank account in name of supplier but controlled by the factor Very different risk profile 13

14 Other Products in Commercial Finance Reverse Factoring Maturity Factoring Asset Based Lending 14

15 International Factoring 83 % of World Factoring turnover is Domestic Factoring Cross-border factoring continues to grow more rapidly than domestic factoring. Either Direct Export Factoring (Factoring Company deals itself with foreign buyers) Or Two-Factor system (Export Factor uses services of Import Factor in buyer s country) 15

16 The Two-Factor System Export Factor IF exchange: Electronic exchange between factors Credit protection & Collection by Import Factor Import Factor Factoring agreement: Prepayment of invoices/ credit management Invoice collection and debtor credit approvals Supplier Delivery of goods & services Debtor 16

17 Two-Factor step by step 1. Client signs factoring agreement with export Factor 2. Client receives order from debtor abroad 3. Client requests his Export Factor to approve the credit line on the debtor 4. Export factor sends info to Import Factor (info on Supplier, Debtor, Credit line requested) 5. Import factor analyzes and approves the credit request on the debtor 6. Export Factor confirms credit line to his client 17

18 Next steps 7. Client makes delivery and sends invoice to the Debtor with assignment text, instructing to pay exclusively to Import Factor 8. Client assigns receivable to his Export Factor 9. Export Factor pre-pays the invoice (generally 80%) to his Client and assigns receivable to Import Factor 10. Import Factor administrates and collects the debt according to local laws, customs, language, time zone, 11. Debtor pays to the Import Factor 12. Import Factor transfers money to Export Factor 13. Export Factor pays the remaining sum to his client 18

19 In case of non-payment Dispute : Import factor informs Export Factor who has to solve the dispute together with his client and inform Import Factor about outcome Non-payment by the debtor because financial difficulties : Import Factor pays out in full (according to credit line granted) at 90 days after due date of the invoice) 19

20 Advantages of working in Two- Factor System No need for costly/complex letters of credit Up to date local credit information on customer/debtor Local expert (import factor) assumes credit risk Import factor dunning in local language, using local courts, aware of local customs and laws, using skilled local lawyers Import Factors understand your business (e.g. client risks) : they are factoring specialists Bilateral business flows : you can be both export and import factor 20

21 When to consider International Factoring? 1. Importer is requesting Open Account settlement 2. Outstanding balance of A/R has accumulated to a certain volume 3. Importer is requesting to shift either from L/C or advance payment to O/A 4. Importer requests to extend longer payment terms 5. Exporter considers to change to direct business with Importer instead of using a local agent 6. Exporter s overseas affiliate insufficiently manages the risk control 7. Shortage of staff 21

22 Benefits of the two-factor system for the Exporter % protection against the buyer s inability to pay on 90 days past due. 2. Increased sales in foreign markets by offering competitive terms and conditions of payment. 3. Credit lines are in place for buyers, which speed up response time for orders and re-orders. 4. Accelerated cash flow through faster collections. 5. Elimination of time-consuming administrative burden or delays linked with the negotiation of Letters of Credit. 22

23 Benefits to the Buyer 1. Purchase on convenient Open Account terms. 2. Expanded purchasing power without using existing credit lines. 3. Orders can be placed swiftly without incurring the delays, complications and cost of opening Letters of Credit. 4. No additional commission for buyers. 23

24 Factoring vs. Letters of Credit Flexibility Factoring High (Changes can be made between Buyer and Seller) Letters of Credit Low (All changes have to be approved by the involved banks) Buyer s Credit Line Buyer is not required to use its C/L for factoring Buyer is required to use its C/L to open LCs 24

25 IFG s Role in the industry Connecting and Supporting the Factoring & Commercial Finance Industry worldwide: Facilitating cross border trade through two-factor platform Offer training and development programs Create awareness for the Industry in new markets (4 Regional Chapters) Lobby influencers 25

26 Membership evolution countries Sponsors Associated Partners Partners Shareholders 26

27 Thank you for your attention Questions? 27

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

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

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

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

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

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

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

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

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

MANAGING CREDIT RISK IN A VOLATILE MARKETPLACE

MANAGING CREDIT RISK IN A VOLATILE MARKETPLACE Export Forum 2015 October 14, 2015 MANAGING CREDIT RISK IN A VOLATILE MARKETPLACE Presented by: George Babeu, President One Source Risk Management and Funding, Inc. WHAT WE WILL DISCUSS Today s volatile

More information

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

Euler Hermes the world leader in credit insurance RISK ASSESSMENT CREDIT INSURANCE DEBT COLLECTION

Euler Hermes the world leader in credit insurance RISK ASSESSMENT CREDIT INSURANCE DEBT COLLECTION Euler Hermes the world leader in credit insurance RISK ASSESSMENT CREDIT INSURANCE DEBT COLLECTION Agenda 1 The Euler Hermes group 2 Our business 3 Our products and solutions 4 Our added value 2 The Euler

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

Factoring in the 21st Century

Factoring in the 21st Century Factoring in the 21st Century The economic relevance of factoring and trade finance in Europe May 2013 1. What is factoring? 2. Who are factoring clients? 3. European factoring market and future trends

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

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

INTERNATIONAL FACTORING

INTERNATIONAL FACTORING INTERNATIONAL FACTORING November 3, 2011 1 L. Gabriel Segura President and founding officer of CVCredit Inc, a Miami-based company which focuses in USA-domestic and international factoring services. Nine

More information

credit MaNaGeMeNt solutions ENABLING COMPANIES TO DEVELOP IN A SAFER ENVIRONMENT

credit MaNaGeMeNt solutions ENABLING COMPANIES TO DEVELOP IN A SAFER ENVIRONMENT credit MaNaGeMeNt solutions ENABLING COMPANIES TO DEVELOP IN A SAFER ENVIRONMENT CofaCe s ColleCtions services Helping you to manage your worldwide receivables more efficiently We provide flexible, scalable

More information

BUSINESS EMPOWERED! Bringing structured Trade Finance Solutions to Corporates and SMEs in the Middle East

BUSINESS EMPOWERED! Bringing structured Trade Finance Solutions to Corporates and SMEs in the Middle East (A member of the FIMBank Group) Regulated by the DFSA BUSINESS EMPOWERED! Bringing structured Trade Finance Solutions to Corporates and SMEs in the Middle East www.menafactors.com Menafactors Limited PO

More information

Opening Up New Markets Overseas

Opening Up New Markets Overseas Opening Up New Markets Overseas Simon Hayden, Interna>onal Trade Manager, Clydesdale and Yorkshire Bank Thought!! The UK represents less than 1% of your available market! When will the >me be right for

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

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

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

I. World trade developments

I. World trade developments I. World trade developments World merchandise exports grew by 2 per cent in value terms in 2013 while exports of commercial services increased by per cent. Key developments in 2013: a snapshot Trade data

More information

TRADE CREDIT INSURANCE

TRADE CREDIT INSURANCE TRADE CREDIT INSURANCE Page 1 INFORMA MIDDLE EAST. All rights reserved OVErVIEW Trade credit insurance is an important trade facilitator insuring around 15% of global trade. Over 95% of private trade credit

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

salesinvoices@leaseinvestment.com www.leaseinvestment.com Tel: +44871 237 4770 Fax: +44701 423 7002

salesinvoices@leaseinvestment.com www.leaseinvestment.com Tel: +44871 237 4770 Fax: +44701 423 7002 INVOICE DISCOUNTING, FACTORING & SALES LEDGER MANAGEMENT Selling your sales Invoices or outsourcing your sales ledger is one of the most complex techniques for business finance. Unfortunately, it is often

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

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

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

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

I. World trade developments

I. World trade developments I. World trade developments World merchandise exports stagnated in value terms in 2012 while exports of commercial services increased by 2 per cent. Key developments in 2012: a snapshot Trade data List

More information

Optimizing Payment Cycles for Trade Payables and Receivables

Optimizing Payment Cycles for Trade Payables and Receivables Optimizing Payment Cycles for Trade Payables and Receivables Houston Treasury Management Association Space City Cash Conference September 2013 Madeline Sprague, HSBC Bank USA, N.A. Global Trade & Receivables

More information

MANAGING TRADING RISKS THROUGH THE ECONOMIC RECOVERY

MANAGING TRADING RISKS THROUGH THE ECONOMIC RECOVERY Trade Credit Practice, UK MANAGING TRADING RISKS THROUGH THE ECONOMIC RECOVERY OCTOBER 2013 CONTENTS The trading landscape for UK based companies... 1 Payment default and bad debt... 2 Insurance benefits...

More information

Total Domestic Factoring FCI 594, , , , , , , %

Total Domestic Factoring FCI 594, , , , , , , % Accumulative Turnover Figures for All FCI Members Compared to Worldwide Factoring Turnover (in Millions of EUR and USD) EUR EUR EUR EUR EUR EUR EUR INCREASE 2006 2007 2008 2009 2010 2011 2012 2011/2012

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

Tools & Resources. A Guide to the Credit Management Service. How to get the most out of your Invoice Finance service

Tools & Resources. A Guide to the Credit Management Service. How to get the most out of your Invoice Finance service Tools & Resources A Guide to the Credit Management Service How to get the most out of your Invoice Finance service 2 Introduction This guide is designed to help you understand the actions you should take

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

Global Funding Marketplace for Invoice Discounters

Global Funding Marketplace for Invoice Discounters Global Funding Marketplace for Invoice Discounters Simple Online Global Highly Liquid Open-Access Marketplace for Invoice Portfolio Divestments partner.aztecexchange.com Welcome to the world of Aztec With

More information

Invoice Finance. Contents. Factoring and Invoicing Discounting 1. The Advantages 2

Invoice Finance. Contents. Factoring and Invoicing Discounting 1. The Advantages 2 Invoice Finance All businesses rely on receiving money for goods and services that they provide and if everyone paid their bills on time wouldn t life be much simpler! Invoice Finance is the means by which

More information

OVERSEAS TRADE FINANCE ( OTF )

OVERSEAS TRADE FINANCE ( OTF ) OVERSEAS TRADE FINANCE ( OTF ) Port to Port Trade Finance Trade Finance Equity Trade Finance Report 3 Port to Port Trade Finance Trade Finance Equity Overseas Trade Finance specialise in sourcing trade

More information

Your Factor of growth

Your Factor of growth Your Factor of growth factoring.bnpparibas.com Set your financial goals Your Needs Does your growth require extra working capital? Do you need additional funding? Are you looking for discounts from your

More information

Customer financing in Brazil Guide for a Finnish SME exporter

Customer financing in Brazil Guide for a Finnish SME exporter Customer financing in Brazil Guide for a Finnish SME exporter Contents Financial markets 2 Know your customer 3 Prepayments received from the buyer 4 Granting payment terms with invoice 5 Bills of exchange

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

Trade Services Utility (TSU) Bank Payment Obligation (BPO)

Trade Services Utility (TSU) Bank Payment Obligation (BPO) Trade Services Utility () Bank Payment Obligation (BPO) Case Study First Forfaiting on /BPO in the world Vale International S.A. The Bank of Tokyo-Mitsubishi UFJ, Ltd. SWIFT Vale s Challenges and Benefits

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

WELCOME! Introduction. Celebrating. &PrimeRevenue. PrimeRevenue Hong Kong. 2012 PrimeRevenue, Inc.

WELCOME! Introduction. Celebrating. &PrimeRevenue. PrimeRevenue Hong Kong. 2012 PrimeRevenue, Inc. WELCOME! Introduction Celebrating Ethe Factor Network establishment of &PrimeRevenue PrimeRevenue Hong Kong 2012 PrimeRevenue, Inc. Global Reach Today, we transact business in 50 countries Our platform

More information

Marketing Consultancy Division (MCD) Export Consultancy Unit (ECU) Export in Focus. Jumada Awal, 1428 (May, 2007)

Marketing Consultancy Division (MCD) Export Consultancy Unit (ECU) Export in Focus. Jumada Awal, 1428 (May, 2007) Marketing Consultancy Division (MCD) Export Consultancy Unit (ECU) Export in Focus Factoring & Forfaiting Jumada Awal, 1428 (May, 2007) 1 Factoring & Forfaiting While the business opportunities associated

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

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

Case No COMP/M.6244 - BNP PARIBAS/ FORTIS COMMERCIAL FINANCE HOLDING. REGULATION (EC) No 139/2004 MERGER PROCEDURE

Case No COMP/M.6244 - BNP PARIBAS/ FORTIS COMMERCIAL FINANCE HOLDING. REGULATION (EC) No 139/2004 MERGER PROCEDURE EN Case No COMP/M.6244 - BNP PARIBAS/ FORTIS COMMERCIAL FINANCE HOLDING Only the English text is available and authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 6(1)(b) NON-OPPOSITION Date:

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

The Political and Economic Impact of Debt: Accelerating Interdependence, Globalization, and the Reallocation of Influence

The Political and Economic Impact of Debt: Accelerating Interdependence, Globalization, and the Reallocation of Influence The Political and Economic Impact of Debt: Accelerating Interdependence, Globalization, and the Reallocation of Influence Australia Brazil China Czech Republic Egypt France Government Debt Germany Greece

More information

List of figures Notes on contributors Foreword Introduction PART I: THE CREDIT MANAGEMENT FUNCTION 1

List of figures Notes on contributors Foreword Introduction PART I: THE CREDIT MANAGEMENT FUNCTION 1 Contents List of figures Notes on contributors Foreword Introduction xi xiii xv xvii PART I: THE CREDIT MANAGEMENT FUNCTION 1 1 Credit past and future 3 Origins; The role of credit and its importance in

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

INVOICE FINANCE. Cash flow solutions that support business growth

INVOICE FINANCE. Cash flow solutions that support business growth INVOICE FINANCE Cash flow solutions that support business growth 1 Contents Invoice Finance 3 Invoice Discounting 5 Factoring 6 How Factoring works 7 Payroll Finance 8 How Payroll Finance works 9 Additional

More information

Supply chain finance provides Dutch buyers with 22 billion additional free cash flow

Supply chain finance provides Dutch buyers with 22 billion additional free cash flow Supply Chain Finance ING Economics Department Supply chain finance provides Dutch buyers with 22 billion additional free cash flow This article determines the value to be gained by Dutch buyers and their

More information

ATOMEX-Europe 2013. 8-9 October 2013, Brno, Czech Republic

ATOMEX-Europe 2013. 8-9 October 2013, Brno, Czech Republic ATOMEX-Europe 2013 8-9 October 2013, Brno, Czech Republic VTB today VTB is a backbone Russian bank, which has built an international financial group. VTB Group possesses a unique international network

More information

Factoring. To explain nature, function and types of factoring. To dilate upon modus operandi of factoring.

Factoring. To explain nature, function and types of factoring. To dilate upon modus operandi of factoring. Learning Objectives: Factoring To explain nature, function and types of factoring. To dilate upon modus operandi of factoring. To bring out potentiality of factoring as a source of finance. To highlight

More information

What is International Factoring?

What is International Factoring? What is International Factoring? Factoring is when a third-party firm, or factor, buys a business accounts receivable or specific invoices - giving the business a cash advance based on those unpaid bills.

More information

Cross-Border Lending Issues From the eyes of a US trade banker

Cross-Border Lending Issues From the eyes of a US trade banker Cross-Border Lending Issues From the eyes of a US trade banker Andrew Moy, Senior Vice President Wells Fargo HSBC Trade Bank USMBA 2007 San Antonio Wells Fargo HSBC Trade Bank, N.A. Mexican Banking Industry

More information

DEBTOR FINANCE: How to choose the right Debtor Financier

DEBTOR FINANCE: How to choose the right Debtor Financier DEBTOR FINANCE: How to choose the right Debtor Financier Is Debtor Finance the best option for me? In our last white paper we talked about what Debtor Finance is, how it works, whats required of you and

More information

Your Partner in International Trade, Investment & Structured Finance. Aon Trade Credit Asia

Your Partner in International Trade, Investment & Structured Finance. Aon Trade Credit Asia Your Partner in International Trade, Investment & Structured Finance The ever-changing financial and political landscape makes it impossible to predict the future. Our culture encourages us to aggressively

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

Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital

Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital TERM / TECHNIQUE DEFINITION APPLICATIONS ADVANTAGES DISADVANTAGES Open Account Terms Seller makes shipment and awaits

More information

I Benefits of MSI Credit Insurance

I Benefits of MSI Credit Insurance Credit Insurance of Mitsui Sumitomo Insurance I Benefits of MSI Credit Insurance Payment condition is usually a critical key for international trade competition. Advance Payment or Letters of Credit (L/C)

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

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business GUIDE TO INTERNATIONAL PAYMENT METHODS Making international trade accessible to every business 2 As the globe is becoming smaller and international trade is becoming easily accessible, the issue of moving

More information

Trade Credit Insurance. Availability and Practice Within the Region

Trade Credit Insurance. Availability and Practice Within the Region Trade Credit Insurance Availability and Practice Within the Region Presented by Alan J Wallace Joint Managing Director IRC Europe Agenda A Brief History of Trade Credit Insurance Current Global Underwriting

More information

INTERNATIONAL PAYMENT METHODS

INTERNATIONAL PAYMENT METHODS S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L INTERNATIONAL PAYMENT METHODS Broward Economic and Small Business Development Export Readiness Semiar February, 2012 Abby Martinez Vice President

More information

Trade Credit Insurance: A Strategic Tool In Times of Economic Instability & Uncertainty

Trade Credit Insurance: A Strategic Tool In Times of Economic Instability & Uncertainty Trade Credit Insurance: A Strategic Tool In Times of Economic Instability & Uncertainty David Dienesch Euler Hermes Canada Andrew Leonard Marsh Canada Limited ECONOMIC UPDATE Uncertain economic environment

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

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

CIMA F3 Course Notes. Chapter 3. Short term finance

CIMA F3 Course Notes. Chapter 3. Short term finance CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to

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

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE Introduction The working capital cycle is the period of time which elapses between the points at which cash is used in the supply/production process, to

More information

Support for West Midlands Exporters

Support for West Midlands Exporters Support for West Midlands Exporters Ian Fletcher International Trade Director Transaction Services UK 20 November 2014 What is an exporter concerned about? How to break into a new overseas market How to

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

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

The Bibby Barometer of Small business PAGE 1. Stress levels rise, but Australia s small business owners remain optimistic

The Bibby Barometer of Small business PAGE 1. Stress levels rise, but Australia s small business owners remain optimistic The Bibby Barometer of Small Business Insight into the biggest concerns of small business owners SEPTEMBER 2011 highlights Business stress More than half of small business proprietors are more stressed

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

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

Introduction to Export Credit Business. SACE SRV - Economic analysis Milan, February 17 th, 2014

Introduction to Export Credit Business. SACE SRV - Economic analysis Milan, February 17 th, 2014 Introduction to Export Credit Business SACE SRV - Economic analysis Milan, February 17 th, 2014 1 Introduction to Export Credit Business Credit Insurance: storyline and market ECAs over the years ECAs

More information

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods Want to start or grow your import/export business? Learn how from industry experts. View our training schedule International Payment Methods As the globe is becoming smaller and international trade is

More information

FACTORING IMPROVE YOUR CASH FLOW & SECURE YOUR DEBTS. Presented by Gregory Bernardi

FACTORING IMPROVE YOUR CASH FLOW & SECURE YOUR DEBTS. Presented by Gregory Bernardi FACTORING IMPROVE YOUR CASH FLOW & SECURE YOUR DEBTS Presented by Gregory Bernardi FACTORING AGENDA What is factoring? How does it Work? Who can use factoring? Advantages/Benefits How much does it cost?

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

Trading with other businesses on credit terms?

Trading with other businesses on credit terms? Invoice Finance Trading with other businesses on credit terms? Our services can help to speed up your cash flow, collect payment on your invoices and protect you from the risk of bad debts. Achieving and

More information

Research Report. in Finance and Banking. Credit Insurance in Europe Impact, Measurement and Policy Recommendations. Amparo San José Riestra

Research Report. in Finance and Banking. Credit Insurance in Europe Impact, Measurement and Policy Recommendations. Amparo San José Riestra Research Report in Finance and Banking Credit Insurance in Europe Impact, Measurement and Policy Recommendations Amparo San José Riestra CENTRE FOR EUROPEAN POLICY STUDIES CREDIT INSURANCE IN EUROPE IMPACT,

More information

Foreign Trade Vademecum. 2012 Edition. osec.ch

Foreign Trade Vademecum. 2012 Edition. osec.ch Foreign Trade Vademecum. 2012 Edition. osec.ch Table of contents. Swiss economic key figures 3 Global view 4 Worldwide export development by region 4 Worldwide largest exporters 4 Worldwide import development

More information

DEBTOR FINANCE: So you are interested in Debtor Finance but you re not exactly sure what it is or how it works.

DEBTOR FINANCE: So you are interested in Debtor Finance but you re not exactly sure what it is or how it works. DEBTOR FINANCE: So you are interested in Debtor Finance but you re not exactly sure what it is or how it works. You need Debtor finance so that you can receive cash straight away to fuel your business

More information

MEASURING NATIONAL INCOME. Unit 5 Theory and measurement in the macroeconomy

MEASURING NATIONAL INCOME. Unit 5 Theory and measurement in the macroeconomy MEASURING NATIONAL INCOME Unit 5 Theory and measurement in the macroeconomy We need information on how much spending, income and output is being created in an economy over a period of time. National income

More information

Foreign Direct Investment in the United States. Organization for International Investment

Foreign Direct Investment in the United States. Organization for International Investment Foreign Direct Investment in the United States Organization for International Investment March 18, 2009 Key Findings FOREIGN DIRECT INVESTMENT IN THE UNITED STATES Foreign Direct Investment in the United

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

BANKING UNIT POLICY DOCUMENTS

BANKING UNIT POLICY DOCUMENTS BANKING UNIT POLICY DOCUMENTS POLICY DOCUMENT ON THE REGULATORY PROVISIONS FOR THE UNDERTAKING OF LENDING ACTIVITIES BY INSTITUTIONS AUTHORISED UNDER THE FINANCIAL INSTITUTIONS ACT 1994 FACTORING FORFAITING

More information

Receivables insurance Protection against the biggest unidentified exposure facing Canadian business

Receivables insurance Protection against the biggest unidentified exposure facing Canadian business Receivables insurance Protection against the biggest unidentified exposure facing Canadian business Presentation to: Alberta Trade Contractors Coalition By: Ian Miller Receivables Insurance Association

More information

International Sales Finance Solutions

International Sales Finance Solutions International Sales Finance Solutions Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services International Sales Finance Solutions Financing Tools to Support

More information

Arranging insurance backed trade finance structures

Arranging insurance backed trade finance structures Arranging insurance backed trade finance structures London Countertrade Roundtable Ian Henderson 21 March 2012 Current environment Economic environment Bank liquidity: Fewer global players active in trade

More information

Open Doors 2013. Report on International Educational Exchange. Produced by the Institute of International Education. In partnership with the

Open Doors 2013. Report on International Educational Exchange. Produced by the Institute of International Education. In partnership with the Open Doors 2013 Report on International Educational Exchange Produced by the Institute of International Education In partnership with the Bureau of Educational and Cultural Affairs U.S. Department of State

More information

Credit insurance. Protection against non-payment/

Credit insurance. Protection against non-payment/ Credit insurance Protection against non-payment/ Trust is often not enough/ Every unpaid invoice harbors the risk of a financial loss. Things can be fine for a long while, but suddenly your customer is

More information