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Factoring has become the main source of growth for Coface, with a double digit
potential growth anticipated over the next five years.
The company aims to offer factoring progressively in all countries in which its
three other business lines (credit insurance, information and receivables
management) have a direct presence, and to build the first integrated factoring
network.
Jérôme Cazes, CEO of Coface, explained: “We have now entered the fifth B2B
global credit crisis, and companies are facing credit restrictions from banks.
"All across the world we see increased interest in factoring as a safe way to
obtain financing.
"It is important to note that there is more credit extended by companies to
their customers through inter-company credit, than credit extended by banks to
companies.
"Factoring reduces lending risk for the factor and secures liquidity for its
customer.”
Czech Republic and Slovakia
With the acquisition of 100% of HP Finance, a factoring company based in the
Czech Republic with a subsidiary in Slovakia, Coface extends its factoring
activity to two new Eastern European countries after the opening of Poland in
2007 (where Coface Poland is already 6th out of 15 players after only a few
months).
HP Finance’s factored receivables totalled €30m at the end of June 2007.
Their clients will gain direct access to the worldwide credit information and
debt collection services of Coface, as well as its protection services, through
Coface’s global expertise in credit insurance.
Coface clients in the Czech Republic and Slovakia will therefore have access to
all four Coface business lines.
China, Australia and Israel
Coface’s factoring network in Asia, which already includes Singapore, Japan and
Hong Kong, has just been expanded to two new countries: Australia (the number 1
factoring market in this region by size) and China (number 1 by growth), where Coface will offer export factoring based on the factoring operation created
earlier this year in Hong Kong.
This development in China will complete the existing domestic credit insurance
offer which the leading private insurer, Ping An, was the first to launch with
the support of Coface in 2003.
Since then, they have covered more than RMB 100 billion of domestic trade and are
number one in the market.
Source: Credit
Control Journal
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