Opportunities and Challenges for Factoring in Emerging Markets

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Opportunities and Challenges for Factoring in
Emerging Markets
Jeroen Kohnstamm
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(No Transcript)
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167 MEMBERS
54 COUNTRIES
EUR 338 BILLION
? A/C 13 members 7 countries
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Exporter
Importer
Import Factor
Export Factor
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Credit risk protection
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Financing
Collection service
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Ledger administration
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Network Extension
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MOST SUCCESSFUL DEVELOPING MARKETS
Taiwan EUR 8.6 billion
Mexico EUR 6.3 billion
Turkey EUR 4.5 billion
Chile EUR 3.2 billion
Hong Kong EUR 3.1 billion
China EUR 2.3 billion
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MOST SUCCESSFUL EU ACCESSION COUNTRIES
Poland EUR 2.5 billion
Czech Rep. EUR 1.7 billion
Estonia EUR 1.5 billion
Hungary EUR .6 billion
Lithuania EUR .5 billion
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DOMESTIC VERSUS INTERNATIONAL FACTORING
? Domestic has older history
? International requires global solutions
? Nature of a market
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Exporter
Export Factor
USA Import Factor
FRANCE Import Factor
JAPAN Import Factor
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BUILDING FACTORING MARKETS IDENTIFYING THE
ELEMENTS FOR FAILURE OR SUCCESS
? Banks versus Factors
? Legal Framework
? F/X Regulations
? Industrial climate (domestic vs
international)
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RECOMMENDATIONS
? SMEs are target clients
? Start with domestic recourse and export
non-recourse factoring
? Learn from correspondent factors abroad
? Establish national factoring association
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THANK YOU FOR YOUR ATTENTION