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.
Factoring in Germany - Industry Shares in Factoring (2018, in %)
© Deutscher Factoring Verband e.V.
In 2018, factoring volume in Germany was EUR 241.8 billion. The factoring ratio was higher than seven percent for the very first time, with a 7.1 percent factoring rate development rate also maintained in 2018. This also indicates that Germany has significant growth potential in comparison to other countries that are reaching market saturation (Belgium – 16%, France – 14%, UK – 13%).
Factoring is a particularly well established instrument of SME financing in Germany. Almost all clients (92.2 percent) are located in the factoring turnover segment of EUR 10 million or less for the year 2018. More than half of all clients (58%) belong to the factoring turnover segment that generated less than EUR 250 million in the same year.
Source: Deutscher Factoring Verband e.V. [German]