It seems that the stalling of the US economy has impacted the activity of factors in the USA and Canada in the first half of 2001. There has been a relative dearth of industry activity being reported and although some potential acquisitions are rumoured, there has been nothing more substantial than rumour for some time. Other unsubstantiated reports state that both CIT and GMAC are not currently interested in buying any other companies and are busy spending time digesting last year’s acquisitions.
Ken Hitzig of Accord Business Credit feels that the factoring market has reached a plateau. The strong fourth quarter figures for 2000 preceded a flat first quarter for 2001. Reports of activity in the second quarter, says Mr. Hitzig, are showing a definite downward trend.
