World Factoring Yearbook 2017 highlights the growing importance of international factoring in the global market

Although the factoring market in the majority of countries is driven by domestic factoring, international factoring is becoming more important as an engine of growth, as evidenced by the World Factoring Yearbook 2017.

One in three countries profiled shows that international factoring has become a significant and rapidly growing source of revenue, often outstripping the growth of domestic factoring. In every case the growth is due to an increase in export factoring. (Very few countries reported a decline in international factoring).

In 2016 Austria’s international factoring turnover increased by 30 per cent from €6.4 billion in 2015 to €8.2 billion in 2016, Estonia by 18 per cent from €362.3 million in 2015 to €429.7 million in 2016, Netherlands 25 per cent from €25 billion in 2015 to €32.57 billion in 2016, Portugal 20 per cent from €7.83 billion in 2015 to €8.49 billion in 2016, Italy 19 per cent from €40.79 billion in 2015 to €48.58 million in 2016. In all these countries international factoring is expanding at a much faster rate than factoring in the home market. One example graphically illustrates this: Germany’s total factoring turnover increased by just 3.8 per cent in 2016 to €217 billion, but its international factoring turnover rose by 14 per cent to €67.9 billion. Most of this was in export factoring which grew by almost 16 per cent to €64.5 million.

Similarly, when international factoring turnover falls as it has done very markedly in the US it will adversely affect the volume of total turnover.

In countries such as Hong Kong, Singapore and Denmark international factoring now represents more than 40 per cent of total turnover.  These countries regard international factoring as an important enabler of their export drive. Other countries such as Egypt are trying to boost export factoring for this very reason.  On a regional basis Europe and Asia appear to have the strongest international factoring markets.

World trade is expected to grow faster in 2017 than in 2016, and international factoring will be a vital contributor to this and to the growth of global factoring as well.

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