Press Release: EUF Whitepaper is now available
Press Release: EUF Whitepaper is now available
The latest version of the EUF’s Industry Standard Whitepaper has been updated and published with the finalised market data for 2018.
The EUF decided to create a document that would effectively communicate the nature, purpose, size and shape of the Industry to interested stakeholders and why it should be treated with consideration to its specific nature. The EUF’s first unique Whitepaper on the Factoring and Receivables Finance Industry was published in 2016.
The document proved to be a powerful tool and has been widely used and distributed as a clear description and introduction to our business. So in 2018, the EUF ExCom decided to update the paper and to seek to confirm the information and arguments still hold true.
Roundwindow was kindly asked to repeat the programme and the exercise was carried out during the summer and autumn of 2018, using a mixture of live data obtained from a large scale Europe-wide survey, corporate financial data and finalised with EUF statistics for the year end 2018.
The Whitepaper research shows that Factoring and Commercial Finance (FCF) continues to be a very low loss given default form of funding, and indeed that performance had improved even since the first iteration of the survey in 2016.
Other findings in the research include that FCF:
- has a demonstrable track record of growth with €1.7 Trillion client Turnover in 2018 – up 7.9% on 2017 and 7.4% CAGR over last 10 years,
- is funding on a scale that is material to EU GDP, demonstrating GDP Penetration of 11% across the EU 28, with €240 Billion advances on €310 Billion security, 220 Thousand clients and in the order of 200 scale providers across the Region.
In addition, the study highlights:
- the three key areas of activity are manufacturing, services and distribution, representing around two thirds of numbers and three quarters of turnover and advances
- that the Industry continues to support all sizes of business, form SME to Large Corporate.
For Françoise Palle-Guillabert, Chair EUF, “The White Paper is a masterpiece in EUF communication. It demonstrates that the European Factoring and Commercial Finance is a real success story, with very low loss levels. From a regulator’s perspective this implies that this form of funding should be associated with a lower risk weighting and a lower cost of capital”.
The full report can be found here.
Factoring and Commercial Finance 2018 Full Analysis
Factoring and Commercial Finance grows again - providing real support to economic performance in the EU
Final analysis of data collated by the EU Federation for the Factoring and Commercial Finance Industry (EUF) shows that in 2018 factoring and commercial finance volumes in the EU grew overall by 7.9% to €1.73 Trillion, 80% of which was domestic business and 20% international.
This rate of growth again clearly outpaces the increase in GDP in Europe and demonstrates clearly the vital role factoring and commercial finance is playing in developing the real economy, providing principally SME businesses with much needed working capital. This success story is about real growth, real employment and demonstrable business success.
Over €240Bn of funding is supporting around 220,000 European businesses.
With factoring and commercial finance now representing around 11% of EU GDP, this is a powerful and important contribution to EU economic development.
Mme Françoise Palle-Guillabert, Chairman of the EUF, noted: "Another year of continued impressive growth in our Industry yet again highlights the increasingly important role we have in financing the real economy right across the European Community. It’s a very satisfying outcome for our Industry members who support so many European businesses in their development and expansion. It also reinforces our message to legislators and regulators that this Industry has a key role to play in delivering European wealth creation. Thanks to these good results, European factoring represents almost 2/3 of the world market and confirms its world leader status ”
Notes to Editors
The EUF is the Representative Body for the Factoring and Commercial Finance Industry in the EU. It comprises national and international industry associations that are active in the region. Its members represent 97% of the Industry turnover.
The EUF seeks to engage with Government and legislators to enhance the availability of finance to business, with a particular emphasis on the SME community. The EUF acts as a platform between the Factoring and Commercial Finance Industry and key legislative decision makers across Europe, bringing together national experts to speak with one voice.
Data has been adjusted to ensure that currency exchange rate fluctuations do not distort the results.
For more information and full data analysis:
See our website: www.euf.eu.com
5th EU Factoring and Commercial Finance Summit Report
The fifth EU Factoring and Commercial Finance Summit has just taken place in Lisbon with the support of the Portuguese Factoring Association ALF and sponsorship of Codix and Alvantia.
The conference, jointly organised by FCI and the EUF, brought over 120 professionals from all over Europe together to discuss the latest developments, opportunities and challenges in the Industry.
Compered by EUF Coordinator and FCI Advocacy Director John Brehcist, the Conference was opened by Françoise Palle Guillabert, the Chairperson of the EUF. She introduced Professor Ricardo Ferreira Reis of the Catolica Lisbon, who shared with the audience his team’s latest research from Portugal into the importance of timely financial support in stressed financial environments, reinforcing the need for appropriate funding mechanisms to meet the needs of businesses at different stages of lifecycle.
Magda Ciechomska Barczak, Chairperson of the EUF Economics and Statistics Committee updated the Meeting on the latest position on the Industry statistics and data gathering on performance measurement. Although yet to be fully finalised, the initial figures indicate growth of 8% to around €1.7 Trillion turnover, average GDP penetration of around 11% and funding advances approaching €250Bn.
José Tavares de Almeida, Secretary General of the ALF updated the audience on the positive state and impact of Factoring in Portugal.
Industry experts Madeleine Best, Stephen Pegge and Magdalena Wessel then joined John Brehcist to discuss the concerns and potential impact on the Industry of changes in the CRR/Basel III implementation of credit insurance as a risk mitigation mechanism; the panel discussed the ongoing lobbying efforts to persuade regulators of the importance of recognising the specific nature of receivables funding when setting the new rules.
The EUF’s operational committee Chairpersons then shared the key issues that have been occupying their and their committees’ attention over the last and coming year; it was clear that an enormous amount of work has and is going on to help protect and serve the Industry. One particular example has been the successful lobbying that has resulted in a derogated treatment in respect of the Net Stable Funding Ratio requirements.
Gold sponsor Codix closed the day with a presentation on their products and services.
The second day opened with Conference host John Brehcist sharing the outcomes of the research his consultancy roundwindow undertook on behalf of the EUF to update the ground-breaking EUF Whitepaper on the Industry, a publication designed to communicate the benefits and success of our industry to interested stakeholders. Highlights include the dominance of Manufacturing, Service and Distribution sectors in the users, the prevalence by number of SME and by value of large corporate users, the continued and indeed improved low loss given default performance reported within a large-scale representative sample survey of the Europe wide market.
Diego Tavecchia, Chairman of the EUF Prudential Regulation Committee introduced a panel of experts (Mattia Ciprian, Tomasz Domagalski, Louis-Marie Durand and José Morera) who discussed the implications of the ongoing developments and impact of new technology, fintechs and digitalisation on the Industry; their discussions reinforced the conclusion that the effect of continuous change and evolution will continue to be felt across the whole sector.
José Antonio Garrote of Gold Sponsor Alvantia then presented to the audience on his company’s services.
EUF ExCom members Fausto Galmarini (Italy) and Andrzej Zbikowski (Poland) shared the challenging developments within their own respective countries of new regulations that require split payments of invoices to separate the VAT element in the collection process. The impact is clearly a challenge for administration and control within our Industry.
The last main panel of the Conference was chaired by EUF Chairperson Françoise Palle Guillabert who was joined by Richard Carter (Bibby Financial Services), Patrick de Villepin (BNP Paribas Facctor), Bill Diviney (ABN AMRO) and Fausto Galmarini (Banca Sistema) to attempt to address the impact of Brexit on the European market. A challenging discussion, given that it is still not clear what Brexit will look like, if it will happen at all, and if it does, what the implications for cross border trade or the future health of the Union. The many options and permutations were discussed and analysed but perhaps in the end, the conclusion could only be que sera, sera!
The Summit was brought to a close by Çagatay Baydar, the Chairman of FCI who thanked all the attendees and presenters for creating and delivering a really valuable event.
Register to the fifth EU Factoring and Commercial Finance Summit in Lisbon, 21-22 March 2019
Registrations are now open for the Fifth EU Factoring and Commercial Finance Summit organised on 21-22 March 2019 by the EUF and FCI. The Summit is the only European Conference organized by the Factoring Industry for the Factoring Industry.
The programme will address the latest updates, promoting and celebrating the impact of the Factoring and Commercial Finance Industry who support the real economy and employment in Europe.
WHO SHOULD ATTEND?
Any senior staff, manager or CEO who needs to be up-to-date with the latest trends and developments in the European Factoring and Commercial Finance Industry.
WHAT IS THE OBJECTIVE?
FCI and EUF represent over 98% of all European market players. This fifth Summit is a unique opportunity for Industry Leaders to network and address topics that really matter for the Factoring Industry.
Register now on FCI website!
We hope to see you in Lisbon!