The growth rate in international factoring volumes world wide is now greater than the growth rate in domestic factoring according to the latest figures for the industry released by Factors Chain International (FCI).
The statistics for 2000 show a growth in international business of 34% compared to 12% for domestic factoring. Whilst actual volumes for domestic factoring are still significantly larger than international volumes, the trend is still appositive one for the industry. It is also a further indication that more and more businesses are switching to international factoring as a way of moving away from letter of credit terms to open account trading.. Importers are now demanding more favourable payment terms and factoring allows exporters to move to open account with a period of credit without fear of bad debts or overseas collection problems.