Factoring is a flexible and bank-independent concept for corporate financing. Liquidity is ensured through the ongoing sale of cash receivables from goods, deliveries and services.
In 2017, factoring volume in Germany was EUR 232.4 billion. The factoring ratio was 7.1 percent – the highest rate recorded in the German market to date. This also indicates that Germany has significant growth potential in international comparison (UK – 11%, Italy – 12%, Spain – 11%).
Factoring is a particularly well established instrument of SME financing in Germany. More than half of all turnover (57.8%) and almost all clients (92.7%) are in the factoring turnover segment with a value below EUR 10 million.
The leasing sector is Germany’s largest investor, generating annual investment volume of EUR 67 billion in 2017. The leasing share of equipment investment is 24.1 percent. Within Europe, Germany is in joint leading position with the UK.