Industry figures 2014: Factoring turnover still on the rise
(Berlin, 16 April 2015) The turnovers of the members of the German factoring association (Deutscher Factoring-Verband e.V.) increased by 10.8% to 189.8 billion Euro in 2014.
From the point of view of customers, factoring is becoming increasingly popular: 18,900 clients already use the advantages of factoring. Meanwhile, the factoring ratio has risen to 6.5%.
In 2014, factoring was able to tie in with the welcome result of the previous year and augment the increase of 8.8% by another 2 percentage points. Hence, the factoring turnover rose by an overall 10.8% to the new top mark of 189.8 billion Euro. “The volume of receivables purchased by the members of the association has therefore nearly broken the 190 billion Euro-threshold, and the 200 billion Euro-mark is within reach”, anticipates Joachim Secker, spokesman of the Deutscher Factoring-Verband’s executive board. As the German economy as a whole “only” grew by 1.6% in 2014, the notable increase of factoring by nearly 11% reveals the significance factoring has been able to achieve in the meantime.
Due to the positive growth in turnover, the factoring ratio, i.e. the ratio between the volume of purchased receivables (according to the turnover of the members of the Deutscher Factoring-Verband e.V.) and the GDP, also increased to 6.5%. Therefore, the turnover of the 24 members of the Deutscher Factoring-Verband e.V. by now serves more than 6% of the overall German GDP! In this context, the members of the association represent approximately 90% of the whole German factoring market.
The popularity of factoring is increasing also from the customers‘ point of view, especially SME-clients use factoring more and more as part of their financing mix. In 2014, the number of clients rose to 18,900, thereby increasing by approximately 7%.
Especially with export factoring, business boomed in 2014 (+19.6 Prozent to 44.8 billion Euro), but this was not only due to the low exchange rate for the Euro. Import factoring increased by 4.8% to 3.3 billion Euro.
The crisis in the European financial markets still has practical relevance, which can also be seen from the in part altered rankings of the most important partner regions and countries for factoring: The traditionally most important partner regions (Eastern Europe, the Benelux and fortunately also France) showed no changes. The most notable change occurred with Asia and Italy both regions improved their positions by four marks, respectively, although Scandinavia dropped by three marks and is now number 7. Spain dropped by one mark, and Greece even went down to the penultimate position.
Factoring - industries and volumes
The top 5 of the most important industries for factoring remained widely unchanged: Trade/trade negotiation, manufacturing of metal products and machines, services, vehicle construction and nutrition/food are still the dominating categories. The manufacturing of chemical products improved by 4 places to the eighth position. This is proof of the export industry “Made in Germany” which expanded in 2014.
In relation to the total factoring turnover, the share of full service factoring increased by 2.5 percentage points to 18.6%. The inhouse-model of factoring decreased by 2.4 percentage points to 75.6%, i.e. in nearly inverse proportion to full service factoring. A possible reason for this could be the growing opening of the market in favour of SME-factoring. Maturity factoring remained virtually unchanged (-0.1 percentage points to 5.8%).
It is to be expected that the consolidation process in the factoring industry will continue in 2015. Notwithstanding, the general outlook for the leading providers of factoring should be positive for the middle-term future. The members of the Deutscher Factoring-Verband e.V. maintain a mainly cautiously optimistic outlook on the future developments in 2015: 50% of the members foresee a “good” development, another approximately 41% envisage an at least “satisfactory” business development. However, in 2013, 64% of the members still expected a “good” development.
2015 could therefore prove to be a slightly more challenging year. However, factoring remains a stable anchor in the German market for SME-financing.
Deutscher Factoring-Verband e.V.
RA Dr. jur. Alexander M. Moseschus, Verbandsgeschäftsführer/Managing Director
Behrenstr. 73, 10117 Berlin
Tel.: 030-20 654 654, Fax: 030-20 654 656