EU Factoring and Commercial Finance grew by over 5,4% in 2015
Data collated by the EU Federation for the Factoring and Commercial Finance Industry (EUF) indicates that in 2015, factoring and commercial finance volumes in the EU overall grew by over 5,4% to €1.47 Trillion.
This continued year on year growth confirms yet again the increasingly important role played by the factoring industry in sustaining liquidity of businesses and boosting the fragile economic recovery. Growth in this type of funding continues significantly to outstrip GDP growth in the Region and confirms its importance in the funding of the real economy.
The newly elected Chairman of the EUF, Erik Timmermans, noted: "The continued growth in total turnover again clearly demonstrates that the EU economy is using Commercial Finance as a source of finance to build and sustain business operations. With the total turnover representing over ten percent of the EU GDP, it’s increasingly clear that this form of funding is a central and critical part of the financial mechanisms that support and encourage European business."
Please find the Press release with turnover volumes by country here:
EU Factoring and Commercial Finance Annual Meeting marks its Success and Progress
The EU Federation for the Factoring and Commercial Finance Industry (EUF) held its Annual Members’ Council Meeting in Brussels on 5th April where representatives of the Federation’s Members (who between them represent 97% of the European industry business turnover) gathered to hear the ExCom and Technical Committees review the extensive and effective range of lobbying and PR activities undertaken over the last twelve months and their plans for the coming year.
The EUF has lobbied on issues as diverse as AnaCredit, The Capital Markets Union, NBNI G-SIFIs, Shadow Banking, The NSFR and the Supporting Factor, interacted with the EBA, ECB, The Basel Committee, European Commission, Parliament and Council. It has held a second successful Factoring Summit, a Breakfast Workshop and also published a White Paper on the Industry which for the first time demonstrates the low loss given default nature of this type of funding.
After eight years of guiding its development, founding Independent Chairman John Gielen is retiring: “I am delighted that in a relatively short time we have been able to develop a small but effective organisation that has already achieved real success in building awareness and understanding of the importance and impact of our Industry!”
Erik Timmermans, Deputy Secretary General of FCI, was elected to take the role of Chairman, and Françoise Palle-Guillabert, Délégué Général of the ASF (France) became Vice-Chairman. Erik Timmermans commented “I thank John for his unstinting work in support of the goals of the EUF and I am looking forward to working with my colleagues in the Federation to continue the vital work of building the role and impact of the Industry in Europe.”
In further organizational changes, Diego Tavecchia of Assifact (Italy) takes the Chair of the Prudential Risk Committee, and Magdalena Ciechomska-Barczak of PZF (Poland) becomes Chair of the Economics and Statistics Committee.
EUF response to second BCBS consultative Paper
EUF has sent its comments to the second consultative document of the Basel Committee on Banking Supervision on revisions to the standardised approach for credit risk.
EUF position paper on AnaCredit
EUF has sent a position paper on AnaCredit to the ECB.
EU Federation for Factoring and Commercial Finance Breakfast Workshop in European Parliament: Building Bridges between Finance and SMEs
Brussels, 27th January 2016 – Markus Ferber, MEP and Vice Chairman of the ECON Committee today chaired a breakfast meeting at the EU Parliament sponsored by the EUF.
The program brought together top EU policy makers, from both the European Parliament and the European Commission, finance providers and leaders of real economy SME users. The hundred attendees explored the opportunities and issues that these employment and wealth creating businesses face in obtaining funding on the ground.
Welcomed by John Gielen, Chairman of the EUF, a range of speakers analysed the impact of Capital Markets Union’s EU Commission flagship project to foster “real economy” funding , the lack of harmonized approaches across different countries and legislations, access to and the relative cost of finance, together with the issues of disseminating knowledge and information.
This theoretical approach was then tested against the real world experience of three SME businesses who talked of their operational challenges in obtaining funding and how in their cases factoring had provided an effective solution for meeting their working capital needs. "SME financing is not about building a bridge, but building bridges – this means offering each SME an individual financing solution that matches its particular business model," Markus Ferber, MEP, pointed out.
The forum gave the groups the opportunity to understand the positons and challenges that each face and was welcomed by all as an important and successful opportunity for dialogue, with doors opened for ongoing exchange of views and information.
John Gielen, the Chairman of EUF, commented: “This meeting was all about building bridges; between the regulators, the providers and SME finance users; today we have had a constructive opportunity to share experience and understanding that provides a new platform upon which to build.”