reforming the asia-pacific financial infrastructure factoring

REFORMING THE ASIA-PACIFIC FINANCIAL INFRASTRUCTURE

Factoring

GLOBAL FACTORING VOLUME 1994 - 2014

1994 1999 2004 2009 2014 € -

€ 500

€ 1,000

€ 1,500

€ 2,000

€ 2,500

(IN EURO BILLIONS)

International Domestic

20 year CAGR = 11%

FCI GLOBAL FACTORING STATISTICS 2014 BY REGION

Europe62%

Asia26%

Americas9%

Africa1%

Australasia2%

Europe Asia Amsericas Africa Australasia

All figures given in Euro Billions

2013 2014Group rate % change

Europe 1,354 1,463 +8%

Asia 599 615 +3%

Americas 192 207 +8%

Africa 23 21 -9%

Australasia 40 42 5%

Total 2,208 2,348 +6%

YOY 7% -23% -33% 270% -7 17% 3%5-Y CAGR 33% 2.2% -9% 37.4% 19.7% 13.% 14.7%

China Taiwan Japan Singapore Hong Kong Other Total Asia0

100

200

300

400

500

600

700 Factoring volume last 7 years

2008200920102011201220132014

COMPARISON: LCs AND OPEN ACCOUNT TRADE

0

10,000

20,000

LCs World Factoring Volume Open Account

in b

illio

n U

SD

13,073

2,818

3,044

1978 1986 1993 2000 2006 2014

2,772

2,781

*Factoring figures reported by FCI**LC figures based on a reported -2.6% drop in 2014 volume as reported by SWIFT

Building bridges in new markets

FCI PARTNERSHIPS: DEVELOPMENT BANKS,ICC, AND THE WTO

FCI MEMBERS AND OBSERVERS

Union with IFG

Union with IFG

Perquisites for factoring

• Clear rules of assignment of debt• Debt can be transferred to the factor• Factor must be able to enforce their rights to the debt against the debtor• Have priority over other creditors

• No legal encumbrances against assignment of debt• Such as ban on assignment of debt

• No stamp duties on assignment of debt• Law to prevent fraud• Availability of credit information on debtor• International factoring- no foreign exchange control