Factoring and commercial finance default rates up to 4x lower than bank lending

Combining regular research from its Economics and Statistics Committee with the results of a confidential survey of 80 provider companies, The EUF has published its Whitepaper Report on the impact of the industry in Europe.

Key messages include:

– Factoring and commercial finance advances €170bn to around 164,000 European businesses of all sizes, large, medium and small, with industry turnover worth over 10% of EU GDP.
– The three key real economy sectors of manufacturing, service and distribution are the principal focus, jointly representing 75% of turnover and advances.
– While SMEs dominate by number, the industry is now supporting all sizes of business from micro to global international; indeed, large corporates represent 60% of total advances.
– Impairment losses are very low in absolute terms and between three and four times lower than comparable forms of lending in the EU; a safe, secure form of lending that providers and regulators should favour.
The Whitepaper powerfully reinforces the EUF’s view that the European Factoring and Commercial Finance (FCF) Industry is a continuing success story, providing working capital to support businesses in the real economy in Europe, creating funding, employment and growth opportunity.

The report is available on the EUF website to download here http://euf.eu.com/what-is-euf