The amount of debts borne by factoring companies in the first quarter of 2013 rose by +2.7% to €45.2bn compared with the first three months of the previous year.
This is the weakest growth recorded since the fourth quarter of 2009, at the end of a particularly unfavourable year.
The underlying trend is clearly a severe slowdown in activity. Over a sliding year, the year-on-year growth rate at the end of March 2013 was close to +6% (with €188bn), following +11% at the end of the first quarter of 2012.
|Annual change in production (%)*||Sliding-year production (Billions of euros)*|
* The amount of debts borne under a factoring contract – excluding floor plan and forfaiting transactions – quarterly data.
Factoring consists in a sale of commercial debts (invoices) by their holder to a factor – the factoring company – that assumes the responsibility of collecting and guarantees a positive outcome, even if the debtor defaults temporarily or permanently. The factor may settle in advance all or part of the amount of the receivable debts sold. The factoring companies are all regrouped under the Association française des sociétés financières (ASF). ASF brings together all specialized credit institutions: 311 companies with almost 295 billion euros in outstandings, or 15% of total credit to the private sector.
Source : ASF