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Business Money Ltd 2008
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IFG annual
meeting 2006 Rio de Janeiro
October 2006
Long time readers of
Business Money will be aware that, sad man that I probably am, but I
have always had a fascination with debt finance of business. I spent
28 very happy years as a banker then had the great good fortune to
be in the right place, at the right time, to launch Business Money
from my kitchen table in 1993 when life’s highway had thrown up some
ambushes and crossroads.
A fundamental truth of business lending is that the basics are
immutable. Another is that there are old lenders and there are bold
lenders, but there are no old, bold lenders. Striking the balance
between entrepreneurial and cautious was ever the art, for
commercial lending can never be pure science no matter what the
credit scoring computer or the latest actuarial credit assessment
tells you. We would all love to be exactly what our sales literature
says we are but, heck, this is the real world.
In both my banking and journalistic careers, one of the most
educational exercises, by far, is to talk to other people who lend
money to businesses. Turn the meeting into one of seasoned
practitioners of the business lending arts from all over the world
and you truly have a gathering to relish.
Just happen to drop it into Rio de Janeiro as well and duty
compelled me to answer the kind invitation from Erik Timmermans and
his board to attend the conference. Life is tough. But a man has to
do what a man has to do. That the subscription director took a shine
to the spouse tour was no great surprise and the debit card was
produced to ensure that I did feel not lonely on the 18-hour
journey.
As it happened, there were several Brits travelling out on our
plane. David Totney was just across the aisle from us, and managed
to sleep the whole way, whilst the Vantis team popped down from
business class, before the champagne rendered the stairs an undue
hazard, to rough it with us occasionally.
Having booked in to the hotel, and changed rooms only once when the
in-room waterfall from the floor above proved not to our taste, jet
lag was remarkably absent, a tribute this time to the comfortable
World Traveller seats BA offered.
Sunday evening offered a chance to meet as many as possible at a
cocktail party, followed by supper in a comfortable setting, outside
of the Sheraton Rio, right by the sea. Apparently there is now a law
against private ownership of beaches but the Sheraton had one.
Our thanks to EXICON Exp. Imp de Consultoria S/A for sponsoring the
cocktails, one of which was as good a party spirit inducer as I have
encountered in many a year.
And so to dinner.
A lively and pleasant meal in the open air came to a close as the
cabaret arrived. I have heard of Brazilian festival dancers and here
they were complete with band. One is left with the impression that
some 97%+ of the dancers’ budget goes on the fantastic head dresses
and little remains to adorn the lower extremities.
Some fantastic entertainment followed and several delegates seized
the opportunity to take some exercise when invited to join the
dancing, purely to shake down their substantial suppers, though one
or two of the more ambitious were believed to be seeking liniment
and physiotherapy the following morning. So what? Brazilians are fun
loving and friendly, that was the atmosphere amongst the delegates
too, it permeated the whole conference.
And so to business.
Jean-Francois Phan Van Phi, chairman of IFG opened the conference
with a board report, followed by Erik Timmermans with membership
details, financials and an overview of proposals to be voted upon.
Reports followed through the day from committees:
Legal, Edward Wilde, Hammonds
Marketing, Sophie Stevens, IFG
Education, Martin Ward, Lloyds TSB Commercial Finance
IT, M Cardoens, IFG
We also enjoyed presentations from new members and sponsors.
PRVI, Liquidity shared the first such session, DCD and White and
Case the second.
An excellent lunch, out of doors but under a covered platform,
followed.
New member and sponsor presentations resumed.
SMELoan were followed by NLB Factoring and Credit IQ.
Some more house business then ensued with Erik Timmermans making a
presentation of the proposed new legal structure of IFG before we
departed into break-out groups for discussion on the topic.
A refreshment break was followed by four chapter reports.
A note on the first one, Choo Boon Tiong who reported on the Asian
Chapter then announced that he was leaving as he has withdrawn from
the market. I have heard him at conferences before, I shall miss his
warm and witty comments.
Other chapter reports came from a new factoring hub in Asia from
Wong Chin Kheng, our old friend Mikhail Treyvish on the east
European Chapter, and one from Nagi Schoucair on the mideast-Africa
Chapter.
And so day one of the conference came to a conclusion and we
departed in groups to enjoy Rio. Warnings about muggings had been
prevalent and we were told it was not wise to display ostentatious
symbols of wealth. I believe if you are sensible, stick to well lit
main streets and use recognised car firms you considerably reduce
any risk and that advice holds for any major city in the world
today. I have felt more uneasy in London at times and one citizen of
Rio to whom I spoke was angry with other Brazilian cities for
perpetuating what he described as an exaggerated account of the
dangers in the streets. We have known delegates get mugged in
Barcelona and Atlanta so he could have a point.
The weather during this period was beautiful and we could see the
dramatic spread of Copacabana beach across the clear blue sea each
time we exited the conference hall. Still, a full day out tomorrow,
sightseeing.
That was the mood as Tuesday’s session commenced with World Economy
Update and Focus on Brazil. This is one of the great coiled spring
economies that will bound into prominence however the G club grows
and we were given a thorough appraisal by Zeina Latif of ABN AMRO
Real (San Paolo).
We were then honoured to hear, in Portuguese but with transcripts,
from one of the great pioneers of factoring in Brazil, Dr Luiz Lemos
Leite. We heard of the history, and progress of the product in
Brazil and how the substantial present day momentum grows all of the
time.
It was then time for another industry stalwart and an old friend to
take the stage. Bruce Jones, top man at the Commercial Finance
Association joined us from America. I had taken the opportunity to
share a beer or three with him already when enjoying some
pre-conference sunshine one afternoon.
Our North American friends employ, with a few exceptions, a relaxed
and laid-back mode of presentation but there is no denying the
impressive might of the all-asset finance sector there, something it
is hard to replicate in Europe. In America retail takes a huge chunk
of the market, in Europe reservation of title can be a huge obstacle
though this gives us a timely lead into the reverse factoring topic
that was under review later on.
But I press on too fast.
Following coffee we enjoyed three presentations on regional
economies and their factoring markets.
Jean-Louis Ekra described the situation in Africa viewed from his
base in Egypt; Carlos Baudrand, with whom we also enjoyed some
informal briefings, was enthusiastic about the prospects in Chile;
and Anuk ul Islam lost nothing in his measured view of Pakistan and
the outlook that is to be found there.
Another excellent outdoor lunch was followed by John Jenkins who
gave a bullish run-down of his GE operation, based in the United
Kingdom but with a broad European vision, and beyond.
Much of the afternoon was devoted to the subject of reverse
factoring and we thought over three submissions:
Testimonial from a country where it works: Spain. This was presented
by Josep Selles of Eurofactor Spain.
Daniel Tso, who runs Obrich International, the only non bank-owned
factor in China then made the case for his sphere of business.
This was followed by a team from White and Case, lawyers. Muriel
Alahadeff and Thierry Bosly looking at the legal case for reverse
factoring and a case study – from Mexico. My wife, Iris, and I
joined these two charming lawyers from Brussels for breakfast one
morning – that is the beauty of a good conference. You can follow up
on points at your leisure.
Jan Christensen of Nordea Finans Denmark then inspired us with some
ideas for increasing business between members before we broke out
once more to examine reverse factoring.
Afternoon tea was followed by a very non-typically American
presentation on global supply chain finance. Louis Barone, executive
vice president and international managing director for GMAC
Commercial Finance New York exudes power and polish. I enjoyed this
presentation particularly.
We closed the day with a finely detailed account of credit insurance
and cooperation with factoring companies from John-Paul Bahamondez
of Atradius Mexico.
That night we all boarded a coach to take dinner in a magical
restaurant with one side fully opened to reveal tropical rain
hammering down upon a lush, and beautifully illuminated garden.
During a long, well-oiled and superbly-fed evening we drew towards
IFG award time. The prevailing mood ensured that the recipients were
heartily congratulated.
Prizes went to:
Service Quality on Import – IFN Finance GmbH (Germany)
Service Quality on Export –Eurofactor AG (Germany)
Export Factor of the Year (Nov05-Oct06) –Eurofactor (France)
Sponsor of the Year (Nov05-Oct06) –Fidis (Germany)
Exceptional Export Growth –Ifitalia S.p.A. (Italy)
Wednesday was our day off. Twelve open jeeps pulled up and the
heavens opened. But undeterred we made our way up the statue of
Christ that dominates Rio. The cloud was so low that we could not
even see his face.
An early departure back into Rio for a splendid lunch allowed some
members of the entourage to espy shops and one or two credit cards
starting itching.
After lunch we headed for the Sugar Loaf which was once again
smothered in torrential rain. The guy selling plastic macs at the
bottom must make a fortune.
And so the day out ended prematurely though several of us grabbed
the chance to go back to the statue of Christ and saw it in
sunshine.
You would have to be a mean spirit not to be moved by this art deco
masterpiece and the way it dominates a city where the Roman Catholic
Church, with its South American flavour means so much to a city of
14 million.
That night the beach party was cancelled because of the incessant
rain but we found a passable restaurant and once again we were
joined by the festival dancers but this time the girls had some
muscular male gymnasts over which to become excited. A great night
out and more embrocation and physiotherapy for the reflective few.
Thursday saw us back in the conference room for matters largely
procedural in relation to the affairs of IFG.
And so the formal part of the conference came to an end.
Friday saw groups of us head off sightseeing and we entertained
Lionel and Glyn from Vantis in the evening at a truly superb
restaurant, returning their hospitality to us a few nights before
when we examined the night life around Ipenema.
Maybe I am lucky but I always enjoy that feeling of camaraderie
engendered by a first class conference. You meet old friends from
abroad like Ralf and Ellie Bauer whom I met in Lithuania and later
in Rome. You make new friends.
Above all, you share an experience of broadening your knowledge of a
great industry and those who serve in it.
You cannot put a price on something like this – only a cost
accountant would try (and he would be none the better for the
exercise).
Those who were there will understand what I mean.
That’s enough.
Editor
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