EUF Networking Event at the European Parliament
A call for additional financing for SME's from
Members of the European Parliament agreed with representatives of the factoring and commercial finance industry that access to finance continues to be one of the most significant challenges for the creation, survival and growth of SMEs, especially those that are innovative.
During a gathering of representatives from the industry, as well as the banking sector, businesses, and policy makers in the European Parliament, key EU legislators discussed the important growth of the factoring and commercial finance industry and the need for sustained sources of finance for SMEs.
The factoring and commercial finance industry demonstrated its importance through the years and is now experiencing a growing acceptance as a perfect cash-flow solution.
"Commercial Finance is now a common financing option for many businesses in need of a flexible form of finance to satisfy their working capital need as it has generous funding levels for the user and low risk for the financier", says Kate Sharp, Vice Chair of the EU Federation for Factoring and Commercial Finance (EUF).
Prominent German MEP Burkhard Balz, and ex-Commerzbank employee, stressed the lack of sufficient representation of the factoring and commercial financial industry at EU level, prior to the EUF - detailing that legislators needed more options for the legislative agenda going forward than traditional banking solutions.
Chairman of EUF, John Gielen, commented that "now is the right time to offer an alternative to riskier options - and factoring provides this. The importance of retaining liquidity of finance for SME's will be crucial in the forthcoming year, as lending in many areas continues to constrict".