Coface extends its factoring offer to five new countries
30-06-2008
Factoring has become the main source of growth for Coface, with a double digit potential growth anticipated over the next five years. Coface 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.
“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” explains Jérôme Cazes, CEO of Coface.
New roots in Eastern Europe: Coface acquires HP Finance in the 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: new factoring activities in promising markets
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 bn of domestic trade and are number one in the market.
In China, the factoring offer will be based on Natixis Bank in Shanghai. In Australia and in Israel, Coface’s offer will be based on local subsidiaries, “Coface Finance Australia” and “Coface Finance Israel” respectively. Both markets show a particularly high potential for growth in receivables financing.
“These 5 new openings bring the total number of Coface entities offering factoring to 23. We are therefore in line with our objective of 30 countries by the end of the year”, says Jérôme Cazes.
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