Global factoring volume reaches € 2,311 billion euros in 2014

Thursday 26 March 2015

Madrid, March 26, 2015 – The global factoring market has reached a volume of € 2,311 billion in 2014, which is the highest figure ever recorded. The world factoring total grew by a moderate 3.6 % from € 2,230 billion last year with Europe and Africa being the fastest growing markets. However, the growth recorded in 2014 is below the annual growth rate (CAGR) of 11 % 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. The preliminary data was yesterday presented by Factors Chain International (FCI), a leading network of global factoring companies, at the RFIx conference in Madrid as part of the organization’s Global Factoring Statistics 2014.

Domestic factoring accounted for € 1,853 billion or 80 % in 2014 while the share of international factoring was 20 % of the total market or € 458 billion. Despite the continuous challenges in the global economy international cross-border factoring increased by 14 % and remained the driver of future factoring growth.

Europe, the largest factoring market worldwide, was the strongest growing region in 2014 as the factoring volume increased by 9.8 per cent to € 1,487 billion (2013: € 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 % of Europe’s factoring volume. In particular, the UK, France, Germany and Italy remain the largest factoring markets in Europe and have all grown last year. Within the region, the fastest growing markets were: Lithuania (+ 101% to € 5.55 billion), Turkey (+29% to € 41.23 billion), Switzerland (+24 % to € 3.83 billion) and the UK (+22% to € 376.10 billion).

The Americas (+ 2 % to € 196 billion) and Africa (+ 8.6 % to € 25 billion) also grew as a region. The US factoring market showed a particularly strong increase by 16.6 % from last year to € 97.67 billion. Brazil remained the second largest market in the Americas with a volume of € 31.78 billion (+0.7 %). The third and fourth largest factoring markets in the region, Mexico (- 9.2 % to € 25.49 billion) and Chile (- 45 % to € 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 % to € 4.2 billion.

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 %. 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 € 603 billion with China being the strongest market in the region. With a volume of € 388.62 billion, the country’s share of the Asian factoring market is 64 %. China managed to counter the trend in Asia as the local market grew by 2.8 %. In contrast, Japan (-33.9 % to € 51.07 billion) and Taiwan (-31.4 % to € 50.05 billion) experienced a clear reduction in volume in 2014.

“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”, Peter Mulroy, Secretary General of Factors Chain International (FCI), commented on the developments.

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.

The full statistics will shortly be available at the FCI website: www.fci.nl/about-fci/statistics