Late payments directive
EUF position paper on Late payments directive
The EU Federation for Factoring and Commercial Finance welcomes Commission proposal to fight late payments
The EU Federation for Factoring and Commercial Finance (EUF) generally welcomes the new proposal to fight late payments as announced by the European Commission on 8 April 2009. The EUF agrees with the Commission’s overall objective of improving the cash flow of European businesses, which is of particular importance in times of economic downturn. The EUF considers the Commission's initiative as an essential step forward that needed to be taken in order to address the challenges that come with the current financial crisis and its effects on the payment discipline of debtors resulting in delayed or late payments. In particular, it helps to prevent small and medium size enterprises (SME’s), being the key players in a vibrant EU economy, from cash-flow shortages that could ultimately result in bankruptcy - all this as a result of debtors paying late.
EU Federation - Press release
EU Federation for the Factoring and Commercial Finance Industry - Press release
EUF is an association of the European Factoring and Commercial Finance Industry, designed to attain common positions on key issues, with the aim of improving the conditions of the EU-based factoring and invoice financing industry.
At a time when the international factoring scene has changed tremendously, and with the growth of the industry, combined with a recent evolution towards asset-based lending, new challenges have been created. With this in mind the EUF proposes an association of European factoring and commercial finance industry representatives.
In recent years, the factoring industry has experienced an upwards increase in activity, reaching in 2007 alone a market growth of 15.01%, compared to 2006, resulting on a world total turnover of 1,176 billion employing over 80,000 people around the world. The total amount of finance provided to businesses in Europe by the Factoring and Commercial Finance Industry at the end of 2007 can be estimated at 146 billion Euros. The total turnover produced by the factoring industry in 2007 in the EU in 2007 ads up to 878 billion Euros.