Factoring Volume in 2020 Fell 6.6%, According to World Factoring Yearbook

BCR Publishing launched the 25-year anniversary issue of its World Factoring Yearbook. Because of the COVID-19 pandemic, the past year has become one of the most challenging for the global invoice finance sector since 1996, which was when the book was first published. The market demonstrated a number of key developments, according to the recently launched report:

• 2020 estimated factoring volume of €2,724 billion ($3,235.5 billion) represented a decline of approximately 6.6%

• Markets were suppressed by governments’ financial support

• There were significant variations between different Asian markets

• There were sharp decreases in factoring volume in the Americas

• There were concerns about rising levels of non-performing loans

• Corporate debts were masked by temporary government support measures

Despite these tendencies, market players from most of the 40 countries participating in the report expressed cautious optimism for the remainder of 2021.

“Since March 2020, the global factoring industry has experienced a period of great uncertainty,” Michel Bickers, editor of the World Factoring Yearbook, said. “But optimism now seems justified as we traverse through 2021, with some markets beginning to see significant increases in volume.”