EU Federation for the Factoring and Commercial Finance Industry

  • Home

EUF Newsletter Autumn 2021

EUF Newsletter 2021 autumn image Page 01

EUF Autumn Newsletter is out!

Highights include:

Welcome from the Chair.

EUF Legal Study update 2021

2021 1H European Factoring Turnover Figures

Financing of orders by French Factors

Final implementation of Basel III: risks or opportunities for factoring?

European Factoring Industry shows an increase in first half 2021

Press Release

Gathered data for European factoring market for IH 2021 has shown again year on year increase of 10.7% for European countries, comparing to 6.0% decrease after IH 2020, the year of the crisis and the lockdowns. Total factoring turnover for European countries reached 953 billion euro comparing to 854 billion euro in IH 2020.

Graph 1. Turnover by country IH 2021

EUF first half 2021

The increase in factoring turnover was higher than GDP yearly change of 7.7%. But factoring remains clearly connected to the GDP in Europe. The European factoring, that represents 2/3 of the world market, amounts to 11% of the EU GDP.

Graph 2. Trends of factoring turnover growth and European GDP growth

Trends of factoring turnover growth and European GDP growth

The trends differ between countries. In almost all countries the increase of factoring y/y is higher than country’s GDP change. Only in Spain, Portugal and Norway the GDP had higher yearly increase than factoring turnover.
Mrs Françoise Palle-Guillabert, Chairman of the EUF, noted: " Whole European factoring market responded positively to economic trends in the first half of 2021. After a one year of drop due to the international Covid-19 pandemic, it again recorded an increase. More than ever, the factoring industry, that finances 260,000 businesses in EU mostly SMEs, has a key role to play in supporting economic recovery, employment and wealth creation in Europe”.

 

Press Release: EUF’s unique comparative Legal Study updated

Legal Study 2021 image

The EUF’s unique overview analysis of the legal and regulatory environments in Europe (and several important comparator countries) has been fully updated with an extensive review and revision of the EU 27 member countries’ positions. The EUF considers that this document represents the only comprehensive analysis of its type available to the Industry, its regulators and lawmakers, associated support service providers and anyone with an interest in the effective finance of business.

The 2021 study comprises 15 sets of questions which investigate the key aspects of receivable financing and factoring, and its value lies in bringing this important information together in one place for analysis, comparison and review.

The document is a substantial development on the previous edition, with further in-depth analysis and now with almost four hundred pages of important data and comment.

The EUF Legal Study will be available on the websites of the EUF and FCI to their respective members and can be obtained by others on application to the EUF Secretariat.  

Françoise Palle-Guillabert, Chairman of the EUF noted: “This latest edition of the legal study continues our practice of providing a benchmark for the common understanding of the opportunities and challenges that exist for the Factoring and Commercial Finance industry. Our role is to support the Industry’s contribution to the real economy of Europe, backing business, economic growth and employment. This study will also bring further insight to all European authorities and their decision making processes.”

Press Release: First decrease in factoring turnover in 11 years – 2020 EU figures

The provisional data collated by the EU Federation for the Factoring and Commercial Finance Industry (EUF) shows that in 2020 factoring and commercial finance volumes in the EU decrease of 5,4% in factoring turnover. It is the first time in 11 years. Total factoring turnover in the EU reached 1.78 trillion € comparing to 1.91 trillion € in 2019. Country members organizations indicate that the drop was mainly an effect of a lockdown. 79% of this represented domestic business and the balance international.

This year’s GDP penetration ratio was slightly lower than last year’s (11.1% compared to 11.3% in 2019), and there were again wide variations between countries. The lowest GDP penetration ratio was in Luxemburg (0,5%) and the highest in Belgium (18%). The results of EU GDP penetration ratio dynamics, compared to previous years’ results, show that a decrease in factoring turnover was in line with the decrease of the GDP of EU countries.

2020 was the following year in a row when a share of non-recourse factoring in total turnover grew again. It exceeded 53% of total turnover (52% in 2019 and 50% in 2018). In 2020 both factoring types decreased, but non-recourse was less affected – when recourse factoring turnover fell by 10% y/y,  non-recourse only reduced by 4% y/y. It confirms that risk coverage offered with non-recourse factoring is highly appreciated by companies, especially in times of uncertainty.

The estimated amount of funds made available to 259,000 European businesses in 2020 was 245 bn euro, 11% lower than in 2019. It may suggest that factoring companies, in times of economic uncertainty, reduced the number of clients with poor financial condition or belonging to the industries. It may also be the result of some state supporting measures to businesses to cope with the crisis that reduce the need of funding.

Mrs Françoise Palle-Guillabert, Chairman of the EUF, noted: "The international Covid-19 pandemic has shaken the world in 2020 and continues to affect all of us. The data collated by the EUF show the significant impact on the activity of factors of the sudden shutdown of the economy with the lockdowns and of the absence of invoices to finance. The coming months will be decisive and the EUF is committed to supporting economic recovery”.

Data has been adjusted to ensure that currency exchange rate fluctuations do not distort the results.

For more information and full data analysis:

 EUF Statistics 2020

Discover the Spring Newsletter

Highlights include:

  • Welcome by EUF Chair person
  • Will the EU Commission's Digital Finance Strategy lead to more harmonization of the regulatory framework?
  • First decrease in factoring turnover in 11 years - 2020 EU figures
  • Understanding default risk in purchased receivables under the new definition of default: the opinion of the EUF

cover EUF newsletter Spring 2021

... ONE MISSION, ONE PLATFORM, ONE VOICE

© EU Federation - 2020