International factoring, a successful and resilient market
Not stingy with assets, factoring solutions are in perpetual development. For 15 years, this market has grown by more than 10% each year in France. It represented no less than 324 billion euros in 2020, placing our territory in the first European rank ahead of Germany and the United Kingdom. While the Covid-19 crisis has had a significant impact on this growth, it has nonetheless demonstrated the resilience of such a source of funding, in particular internationally. Over the year 2020 as a whole, the drop is more marked for domestic transactions, which fell by -8.2% to 219.4 billion euros when transactions carried out abroad amounted to 104.2 billion euros in total. euros, down -5.9% compared to 2019. Over a year of normal growth (2019),international factoring grew twice as fast as domestic factoring with an increase of 15.5%.
In the first half of 2021, volumes linked to international activity continued to grow well, with 57 billion euros in June 2021 against 52 billion euros in June 2019 (and 51 billion euros in June 2020).
Olivier Lène, Factofrance Director of Structured Finance specifies "
Multinational contracts are the main
source
of growth (+ 21% in June 2021 compared to June 2020), while domestic activity has increased by +15. , 2% over the same period
”.
Zones and countries of intervention of Factofrance within the framework of the international financial arrangements FactoFrance
Flexible and tailor-made solutions
When we talk about structured financing in factoring, we are actually talking about tailor-made factoring, very often deconsolidating, which is part of operations to refinance an existing debt (LBO) and multi-jurisdictional thanks to a solution that works in the different countries in which the company is established with:
- A homogeneous contractual framework that works the same way everywhere.
- A sustainable financing line with a commitment over time.
- An attractive pricing with regard to the amounts financed: 20 to 500 million euros.
“
The teams work every day to provide advice on targeted international issues, particularly with regard to the best arrangements to apply.
Our solutions for this type of international company are very often deconsolidating.
They allow our clients to restate their balance sheets in order to reduce their indebtedness, and therefore to display better financial ratios
”, explains Olivier Lène.
This search for optimal funding, accompanied by a specific organization, guarantees global expertise coupled with great flexibility.
Factofrance, an approach that combines multiple expertise
Today the European leader within the Crédit Mutuel Alliance Fédérale group, Factofrance was one of the very first players to launch this type of multi-country operation to meet the challenges inherent in the internationalization of European companies. With financial transactions becoming increasingly complex and increasingly important, cultivating an international vision makes sense. Factofrance has therefore broadened its intervention to cover the needs of foreign subsidiaries with a turnover of 100 million to several billion euros. Still through a personalized approach, Factofrance has established a working methodology that operates in project mode and which brings together various areas of expertise with a view to optimizing cash flow and centralized management of customer workstations:enhanced support on commercial, structuring, legal, cash management, accounting and technical (IT data exchange) issues at all stages of the process, from the preliminary study to the operational start of the first financing. Factofrance has also created FactoStart, a unit responsible for supporting the client in the operational start-up of each program. This one benefits from a global and personalized support to facilitate this often sensitive phase.a unit responsible for supporting the customer in the operational start-up of each program. This one benefits from a global and personalized support to facilitate this often sensitive phase.a unit responsible for supporting the customer in the operational start-up of each program. This one benefits from a global and personalized support to facilitate this often sensitive phase.
Olivier Lène adds “
Our ability to structure the deal, but also to discuss and support all stakeholders (finance, legal, cash management project team) is reassuring for the client.
Not to mention that this approach allows it to have, very early on, a global vision of its project, it is our signature in this market and this is what makes all the difference.
"
Thanks to a team of 40 people experienced in specialized international financing operations, Factofrance is able to set up a complex transaction in 45 days.
