Coface expands its factoring services

11/07/2008

Finance provider Coface has recently announced that factoring will be their main source of growth over the next five years. The company is predicting double digit growth by 2013, and aims to offer factoring progressively in all the countries currently covered by its other three businesses: credit insurance, receivables and information management.

Coface also plans to pioneer the first integrated factoring network. The company's CEO Jérôme Cazes spoke of the benefits of factoring: "We have now entered the 5th 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 other companies (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."

Coface has also acquired HP Finance, a factoring company based in the Czech Republic with a subsidiary in Slovakia. The clients of HP Finance will gain direct access to the worldwide credit information and debt collection services of Coface, as well as its protection services, as a result of the company's global expertise in credit insurance. HP Finance's factored receivables totalled Euros 30 million at the end of June 2007.