Factors Chain International preliminary global factoring statistics revealed at RFIx 2015

Madrid, 26 March 2015:

Receivables Finance International 2015 in Madrid plays host to Factors Chain International global factoring statistics announcement

Receivables Finance International (RFIx) was, once again, the venue for the release of the Factors Chain International (FCI) preliminary global factoring statistics. Yesterday, 25 March, at RFIx 2015 in Madrid, Peter Mulroy, secretary general of Factors Chain International, revealed this year’s preliminary data to convention attendees, with global factoring volumes reaching the highest figure ever recorded.

The global factoring market reached a volume of EUR 2,311 billion in 2014, growing a moderate 3.6 per cent from the EUR 2,230 billion recorded last year, with Europe and Africa being the fastest growing regional markets. However, the growth recorded in 2014 is below the annual growth rate (CAGR) of 11 per cent for the last 20 years. This is mainly due to a strong decline in the factoring volume in Asia, the second biggest factoring market in the world.

Domestic factoring accounted for EUR 1,853 billion or 80 per cent of the total in 2014, while international factoring represented 20 per cent of the total market, amounting to EUR 458 billion. Despite the continuous challenges in the global economy, international cross-border factoring increased by 14 per cent and remained the driver of future factoring growth.

FCI Global Stats

Europe, the largest factoring market worldwide, was the strongest growing region in 2014 as the factoring volume increased by 9.8 per cent to EUR 1,487 billion (2013: EUR 1,354 billion). This is the highest growth rate for the European market since 2011. The growth has mainly been driven by the strategic emphasis towards factoring by the commercial banking sector which controls approximately 90 per cent of Europe’s factoring volume. In particular, the UK, France, Germany, and Italy remain the largest factoring markets in Europe and have all grown in the last year. Within the region, the fastest growing markets were: Lithuania (+ 101 per cent to EUR 5.55 billion), Turkey (+29 per cent to EUR 41.23 billion), Switzerland (+24 per cent to EUR 3.83 billion) and the UK (+22 per cent to EUR 376.10 billion).

FCI Europe Stats

The Americas (+ 2 per cent to EUR 196 billion) and Africa (+ 8.6 per cent to EUR 25 billion) also grew as regions. The US factoring market showed a particularly strong increase by 16.6 per cent from last year to EUR 97.67 billion. Brazil remained the second largest market in the Americas with a volume of EUR 31.78 billion (+0.7 per cent). The third and fourth largest factoring markets in the region, Mexico (- 9.2 per cent to EUR 25.49 billion) and Chile (- 45 per cent to EUR 14.03 billion), both saw a decline in the factoring volume. In Africa, Morocco was the strongest performer as the local factoring market grew by 52 per cent to EUR 4.2 billion.

 FCI Americas Stats

The Asian region accounts for more than half of the total cross-border factoring volume. But in strong contrast to the global trend, the factoring market in the region shrank by 5.6 per cent. This is the first time since the financial crisis that the factoring volume in Asia declined. The second largest factoring market globally now has a volume of EUR 603 billion; China remains the strongest market in the region, with a volume of EUR 388.62 billion – the country’s share of the Asian factoring market is 64 per cent. China managed to counter the trend in Asia as the local market grew by 2.8 per cent. In contrast, Japan (-33.9 per cent to EUR 51.07 billion) and Taiwan (-31.4 per cent to EUR 50.05 billion) experienced a clear reduction in volume in 2014.

FCI Asia Stats

Commenting on the preliminary figures, Peter Mulroy, FCI secretary general, said: “Overall, the factoring industry experienced another solid year of growth despite a volatile economic environment. Europe continued to be the dominant region in the world. Asia has experienced a very strong growth since the start of the financial crisis; however, 2014 was a much more challenging year, especially in the Greater China region. In general, the factoring industry’s volume continued to excel around the world.”

The FCI Global Factoring Statistics present on an annual basis the key factoring data around the world. They cover domestic and cross-border factoring volume collected from over 270 members in 73 countries.

While the figures revealed at RFIx 2015 were preliminary, the full statistics will be made available by FCI in the coming weeks at www.fci.nl/about-fci/statistics.

 (Source: Factors Chain International)