The factoring market

On a worldwide scale, almost a thousand companies currently offer factoring services, of which 435 are in Europe (Sources: Factor Chain International).
The factors, namely the companies operating in this market, are usually subsidiaries of banking groups, financial institutions, insurance companies or manufacturing firms, and rarely independent companies.

The current internationalisation of the market is reflected in a growing trend towards buyouts and mergers in a sector still dominated by essentially national agents.
The diverse nature and current demands of businesses that use factoring are currently contributing to the emergence of new services and ever-increasing incorporation of new technologies.

Figures for 2008

Factoring in Europe, Factoring in the world, International Factoring, The history of factoring

Factoring in Europe

The growth of the market of the factoring in Europe drops in 2008, so finishing a cycle of growth begun in 2004. The weight of Europe in the market of the world factoring decreases appreciably, passing from 70,2 % to 67,9 %.

7 countries where Eurofactor is implanted represent more than 80 % of the market of the factoring in Europe.

• Growth of the European market (€ billion)

Source : compilation Eurofactor (Production of factoring companies on European market in Md€)

Factoring in the world

The growth of the market of the world factoring slows down, but at a still considerable level of 7,8 %.

• Volume and changes in the factoring market (€ billion)

Source : compilation Eurofactor (Production of factoring companies on European market in Md€)

International Factoring

The market of the International Factoring continues to grow quickly (21 %) although less faster than in 2007 (41 %)

• Volume and relative weight of international factoring (€ billion)

Source : compilation Eurofactor (Production of factoring companies on European market in Md€)

The history of factoring

The 60's witnessed the birth of factoring in the domestic market

Factoring started in the United States, and then, as a result of pressure from joint ventures between American factoring companies and local partners, it rapidly became established in western European countries in the middle 60's.

The 70's witnessed a rapid growth in factoring

For a good many companies, economic crisis and mass bankruptcy are synonymous with a need for greater security. In such crises, factoring companies then bring the necessary guarantee of secure customer account management.
At the same time, the growth of international trade was no longer restricted solely to multinationals, but also involved many more modestly-sized businesses which found in export factoring a simpler and risk-free solution for their business development needs.

The 80's was the decade when factoring matured and developed

The factoring market experienced a boom associated with a new functional approach on the part of the main factors - growth and vigour in commercial processes, the emergence of new international networks, flexibility and customisation and new customer services.

Today, growth and mutual trust

Although the late 80's were characterised by a slight stagnation in the factoring business worldwide, the market is now experiencing renewed vigour. There are several reasons for this:

• Companies have a better understanding of the services and benefits factoring can provide
• Constant innovation, the guarantor of varied services which are regularly updated to suit company needs
• The boom in the outsourcing of accounts receivable management

A growth in factoring at international level

2005: upturn

In 2004, the French factoring market returned to strong growth, at a rate of 11.3%. This buoyant market still offers high growth potential.

In a highly competitive market, the main priority among factors remains the development of new services.

In 2005, factoring continued to advance: +10.7%, with total receivables handled amounting to €89 billion.