GROWTH DRIVER SME INITIATIVE: BNP PARIBAS FACTOR GROWS BY 12.5 PERCENT
Through the SME initiative BNP Paribas Factor GmbH achieved a growth of 12.5 percent in 2017.
BNP Paribas Factor continued to grow in 2017: the factoring subsidiary of BNP Paribas increased annual revenues by 12.5% year on year to EUR 23.8 billion. “The SME initiative we kicked off one year ago gave us a significant boost,” says Thorsten König, CEO of BNP Paribas Factor. “We will therefore keep our strategic focus on this initiative in the current year.” The initiative centres on small and mid-sized enterprise (SME) clients with EUR 10 million and above in annual revenues. That is also in line with BNP Paribas Group’s growth strategy in Germany. “The cooperation within the group is highly successful and opens up interesting opportunities to further build our SME business,” König continues.
In its international business, BNP Paribas Factor succeeded in growing revenues by 6.5%. “Many companies find international transactions very challenging. Considerably extended terms of credit and increasing country risks frequently lead to liquidity squeezes. An experienced factoring partner can add significant value in these situations,” explains König. BNP Paribas Factor’s in-house factoring business could grow revenues by 20%. “Many clients greatly prefer to stay directly in touch with their clients. Silent in-house factoring is therefore much in demand since the client continues to handle account receivables and dunning while benefiting from the additional liquidity and safety we can provide.”
In its national business, BNP Paribas Factor succeeded in growing revenues by 19% while tripling the reverse factoring proceeds. Reverse factoring is a type of pre-financing for suppliers. Those benefit from faster cash inflows while the ordering party enjoys extended payment terms.
“We expect to grow our business further in 2018 on the back of increasing demand across all our businesses. We aim to accelerate this development by strengthening our SME initiative and investing in additional employees as well as our IT systems and solutions,” says König.