Hi, I am working in factoring since 1997 and I enjoyed every single moment of it, because of the useful, interesting service/product we are offering to a large range of companies, but also because of the amazing contacts with prospects, clients and BNP Paribas colleagues.
Do you know that today almost 90% of the global trade transactions are done by open account settlements and that the total receivables finance volume reached € 2,770 Bn in 2019, which is an increase of 10% compared to the year before. Of this volume 69% is realized in Europe (Source FCI). These figures show the importance of factoring / commercial finance / invoice discounting for all kind of companies looking for working capital, whether or not in combination with risk mitigation or credit administration.
What makes factoring so interesting? To me, it is the combination of financing, risk coverage and administration, as well as the fact that it is a flow-based, data driven service that is very flexible for our clients. During the past decades I saw the evolution to more and more data transmission avoiding paper work, but also limiting human interferences and thus mistakes.
Another fascinating evolution which I witnessed, is the growth of the cross-border factoring programs. BNP Paribas can offer both Pan-European for very centralized good rated companies , as well as Multi-Local programs for more decentralized groups, where the separate entities prefer a local factoring solution with a group wide coordination on HQ level. This dual offer possibility makes us quite unique on the factoring market. Since 2005, I am closely involved in this process and supporting the colleagues in setting up Multi-local programs. Team work across the borders is very enriching for all partners. However it requests a strict regular coordination amongst involved BNP Paribas colleagues and an excellent communication between all stakeholders. But the satisfaction of success is huge and shared by all involved colleagues.
Even during the past months, which were quite unique, extremely intense and special for all of us, because of Covid-19 measures, the GFCC colleagues and I remained in direct contact with all parties to coordinate, stimulate and support our factoring activities. Daily phones, conferences calls and exchange of information without physical contact and direct feedback possibilities of the colleagues can be very stressful and demanding, but together we showed flexibility, we made big efforts and we did a great job.
For the near future liquidity will even become more key than before, as all companies, in one way or another, are looking at their working capital capabilities. I am convinced, and in a way also proud, that our factoring programs will be very helpful for the reconstruction of the economic environment. Be sure, you can always count on BNP Paribas Factoring to be your partner.