The data collated by the EU Federation for the Factoring and Commercial Finance Industry (EUF) shows that in 2019 factoring and commercial finance volumes in the EU grew overall by 7.9% to reach €1.91 Trillion. As before, 80% of this represented domestic business and the balance international.
This rate of growth – which equaled that seen in 2018 - again clearly outpaces the increase in GDP in Europe and continues to demonstrate the increasingly vital role factoring and commercial finance is playing in developing the real economy, providing principally SME businesses with much needed working capital.Funding of €275Bn is supporting around 280,000 European businesses, helping them deliver real growth, real employment and demonstrable business success.
With factoring and commercial finance now representing around 11.3% of EU GDP, this is an increasingly powerful and important contribution to EU economic development.
Mme Françoise Palle-Guillabert, Chairman of the EUF, noted: Our members report yet another year of sustained and impressive growth in our Industry. It yet again confirms the very important role we play in supporting the real economy right across the European Community. For us as providers, it is very rewarding to see our efforts are translating into such a benefit for EU business. It again reinforces the message to our legislators and regulators that this Industry has a key role to play in enabling European wealth creation. This is particularly important in the current unprecedented Covid-19 pandemic. European Factors will give particular attention in the coming months to the needs of businesses, from micro to SME, from merchant to large corporate, all of which are exposed to the consequences of this exceptional health crisis.”
ENDS 07.04.2020
Notes to Editors
The EUF is the Representative Body for the Factoring and Commercial Finance Industry in the EU. It comprises national and international industry associations that are active in the region. Its members represent 97% of the Industry turnover.The EUF seeks to engage with Government and legislators to enhance the availability of finance to business, with a particular emphasis on the SME community. The EUF acts as a platform between the Factoring and Commercial Finance Industry and key legislative decision makers across Europe, bringing together national experts to speak with one voice.Data has been adjusted to ensure that currency exchange rate fluctuations do not distort the results.