reforming the asia-pacific financial infrastructure factoring
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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