Eurofactor, the factoring subsidiary of French credit-insurance group Euler & Hermes, has seen its profits plunge into the red, down from a profit of 5.7m euros in 2001 to a loss of 4.5m euros in the first half of 2002.
This follows reports in April of a decrease in turnover for the group in the first quarter of the year. The decrease at the time was attributed to both financial commissions and to factoring commissions. The decrease in commission volume was the result of lower average interest rates since the end of March 2001. Also, since Autumn 2001, to meet increase debtor risk, Eurofactor was being commercially more prudent and selective. This lead to a drop in the global level of purchased debts and of the financing rate granted.
