Annual Review 2019

FCI is the Global Representative Body for Factoring and
Financing of Open Account Domestic and International
Trade Receivables. With close to 400 member companies inapproximately 90 countries FCI offers a unique network forcooperation in cross-border factoring.
FCI is building bridges:–

To global business opportunities–

To new markets–

To new partnerships–

To innovative products and services–

To know-how and leading expertiseAnnual Review 2019

Content
FCI Chairman’s welcome / Çagatay Baydar, FCI Chairman

2

Introduction / Peter Mulroy, FCI Secretary General

4

FCI Vision Statement & Mission Statement

6

Roundtable: Fraud in the changing Receivables Finance World

7

Regional updates● Developments in Africa / Afreximbank

10● Americas: stable and growing market / Alberto Wyderka

11● The North East Asia region is growing / Lin Hui

12● South and South East Asia– the emerging region / Lee Kheng Leong13● CEE, SEE and the Middle East – a region with promising future /14

Betül Kurtulus● Factoring in the European Union:15

a success story in an uncertain context /Françoise Palle-Guillabert
Global Economic Prospects / John Brehcist

16

Global Industry Activity Report for 2018 / John Brehcist

18

FCI Expressed in Figures / Harry Biletta

21

Factoring Turnover by Country in 201823

Total Factoring Volume by Country in the Last 7 Years

24

FCI Chairman’s welcome
Letter by Çagatay Baydar, FCI Chairman
2019 is the 51st year of existence of FCI. Last year FCI celebrated

However, if you look at the past 20 years, the industry has

its 50th anniversary, an unforgettable event held in our homegrown on a CAGR basis of nearly 10% p.a. The true growth spurt

city of Amsterdam this past June, with a record attendance ofin volume was also accelerated after the Millennium. In 1998,

nearly 400 executives from over 70 countries present. Aftertwenty years ago, the Industry was generating approximately

the celebrations, we continued to launch numerous projects,

EUR 500 billion in annual volume. By the end of 2018, it grew toparticipated and organised numerous conferences, andover EUR 2.76 trillion in volume, a five-fold increase. This wascontinued to strengthen our major stakeholder relationships

due to four major influences 1) the fast increase in growth inwith other like-minded organisations.

open account trade 2) the rapid expansion of business in Asia,
led by China; 3) the resurgence in cross-border factoring, both

In September 2018, FCI organised a very successful promotion

direct and indirect via correspondent factoring; 4) and the rapid

conference in Egypt together with Afreximbank and Egyptian

expansion of factoring in Europe.

Factoring Association. In October, we organised together with
the European Bank for Reconstruction and Development

Other contributing factors will impact the growth of factoring(EBRD) and the Turkish Financial Institutions Associationin the future, especially in the emerging markets, where rather

a conference on Turkey Bridging Continent: Internationalarchaic regulations stymie the growth of receivables purchase

Regional Factoring Conference for the CEE, SEE and Middle

programs, like the continued use of stamp duty tax, foreign

East. It was followed by a joint Legal Conference with thecurrency restrictions, or laws limiting the rights of assignment.

China Banking Association and our member, Postal Savings

The good news is that the development of receivables registries

Bank, attended by members of the China Supreme Court toto protect factors from fraud or factoring laws that canclarify legal aspects on factoring. Numerous judges, lawyers

protect the industry from unfair regulations are on the rise.

and industry experts from China had also attended the event.

The development of the UNCITRAL model law on Secured

In November, we organised with the International FinanceTransactions (ratified end 2018) will also have a significant hand

Cooperation (IFC) a joint Promotion Conference on Factoringin the elevation of factoring and receivables finance. The seeds

and Receivables Finance in Manilla, the Philippines, followedof change are sprouting in these markets as well, as more andby a Supply Chain Finance (SCF) Workshop together with Asia

more central banks come to the conclusion that factoring has a

Development Bank. This year in March 2019 we organised

direct correlation to the ability to access capital for SMEs, thewith Afreximbank, a Regional Conference on Factoring

engines of growth for jobs around the world.

and Receivables Finance in Southern Africa in Gaborone,
Botswana and the week after the annual joint event with the
EU Federation, very successful EU Factoring and Commercial
Finance Summit. In addition to all the jointly organised
promotional and regional events, FCI organised educational
events: last year in Beijing, China, Training on Risk Managementand Legal Considerations in Factoring & Receivables Financeand in April this year in Bucharest, Romania, Seminar on Risk
Management & Legal Considerations in Receivables Finance.
We also organised several webinars for the first time, whichallows our existing and prospective members to learn without
having to leave their office and avoid travel costs.
The world factoring statistics indicate that the Factoring andReceivables Finance Industry volume shows solid growth,
representing a 6.49% increase, and indicating positive trends in

The areas in grey are countries that have yet to adopt factoring,

all regions of the world. Europe accounts for 66% of the total,

however FCI is aggressively planting seeds in these markets asfollowed by Asia with 25% and the Americas with 8%.

well, mainly in South East Asia, Middle East and Africa.

FCI members last year accounted for nearly 60% of global
factoring volume, and nearly 90% in international crossThe launch of FCIreverse, FCI’s answer to the formation of theborder volume. Progress seems to indicate that the flat growthvery first SCF global community, allows members of FCI to beexperienced in 2015–2016 period is behind us.

on-boarded onto a state of the art global operating supply chain

2

FCI Annual Review 2019

FCI Chairman’s welcome

finance platform, that brings together all onto one operatingand entrepreneurs but also government and central banksystem, including the anchor buyers, anchor buyer’s financial

officials. Our partner, the Afreximbank agreed to cover half ofinstitution, their domestic and international suppliers, andthe costs; the new Director will be housed in their head officepotentially the foreign supplier’s financial institution from thebased in Cairo.

+90 countries FCI serves, to support the foreign supplier onboarding process.

The appointments complement our two existing regional
directors that cover respectively the Americas via Mr Alberto

FCIreverse will create numerous benefits that many members

Wyderka and the South and South East Asia region via Mr Lee

have not been able to access on their own:

Kheng Leong. South East Asia market represents 10% of the1) A robust global legal framework to handle domestic andmembership but has significant growth opportunities with theinternational buyer and supplier on-boarding
2) Reduced upfront investment costs in order to integrate into
the FCIreverse global platform
3) State of the art technology

passage of new factoring laws in India, Vietnam and Philippines
even if they have important barriers to growth. FCI will focus on
educating the governments and their lawmakers on the benefitsof factoring and receivables finance, especially for SMEs!

4) A global network solution5) New and increase greenfield revenues

The strategy behind the appointments is to further support

6) And first mover advantage, due to the unique one of a kind

our members by a decentralisation of the organisation into

opportunity

six separate regions. The interest in RF in emerging markets is
growing. Hence, we believe decentralisation of the organisation

FCI also launched a new Islamic Factoring initiative, theis a must and will answer the unique needs that each region

creation of FCI’s proprietary Rules on Islamic Factoring, which

represent. We brought on very seasoned executives in open

were approved by the FCI council during the Amsterdam annual

account trade finance, with strong market knowledge and lookmeeting last year. We intend to have members globally use

forward to you meeting them soon.

these rules, which will help develop the growth of factoring,
expecially in the Muslim countries. We are excited about thisIn most emerging countries, factoring has yet to catch on. But

initiative, and anticipate seeing many new countries join FCI’sin fact, over two thirds of FCI’s new members over the past

initiative and develop factoring in their markets.

three years are coming from the emerging countries. They are
truly the pioneers, in countries like Philippines, Bangladesh,

FCI has begun the process of the hiring of a larger regional

Cambodia, Mongolia, Botswana, Senegal, Zimbabwe,front office. FCI recently announced the hiring of 3 new regional

Dominican Republic, and El Salvador, and it’s a fact that many ofdirectors, one representing North East Asia, Mr Lin Hui based inthese countries ten years from now will witness a renaissanceShanghai, who is one of the early pioneers of factoring in China.

in receivables finance. It will take time, but we believe the seeds

This region, comprised of six countries, accounts for 22% of FCI

FCI is planting in these markets will bear fruit and pay dividends

membership and 20% of global volume.

to the global industry. It won’t happen overnight, but if you lookback thirty years ago, factoring didn’t exist in such markets like

The second appointment, Mrs. Betül Kurtulus, previous GM

my own in Turkey, China, India and many others. It was theseof Strateji Faktoring, based in Istanbul. Betül has tremendous

seeds FCI planted and the fertiliser FCI spread over the years

experience in factoring in Turkey, and has worked on technicalthat created the green shoots we see today, and in some cases

committees inside FCI. She will oversee a new region, whichtrees and forests that have developed in these markets overcombines Central, Eastern, South Eastern Europe and thetime.

Middle East. The region comprises 25% of the membershipbut only 5% of global volume, but it has significant growth

For those who are reading this Annual Review for the first time,

opportunities.

we hope that this important annual publication will give you
an in-depth view of the magnitude and importance that our

We expect to appoint shortly the new Regional Director Africa.

industry holds today, and the opportunities for you to help

Africa, which accounts for less than 10% of membership but

spread the seeds of factoring to all corners of the world.

only less than 1% of global volume, is still a very immature
market and requires tremendous hand holding and special
attention to promote factoring to banks, financial institutions,

FCI Annual Review 20193

Introduction
By Peter Mulroy, FCI Secretary General
After the celebration of its golden anniversary, 50 years ofTechnology

existence, it’s time to look closely at the trajectory of where

FCI is also about to launch a new IT project, to develop a state

the organisation is heading. This article highlights the majorof the art global receivables platform, potentially based onchallenges and opportunities facing FCI and the industry anda decentralised database platform using new Blockchain/lays out a roadmap for success for FCI to follow for the next

Distributed Ledger Technology (DLT). This system will replace

years to come.

the current EDI based platform that members use today to
conduct cross border international factoring using our system

Membershipand proprietary rules. FCI is also about to hire a new IT Director,

FCI has evolved as an association, from having less than 100

to support the launch of a replacement for Edifactoring, ourmembers 20 years ago, to today nearly 400 members. Backunique trading platform. However, the system is over a decadethen, nearly half of our membership was in Western Europe.

old. This is an opportunity to replace the system using theToday, that figure stands at less than 25%. Asia accounted fornewest technologies available.

3% of membership, today nearly 25%. And in the emerging
countries, FCI had no members in Tier 1 countries and justMigrating edifactoring to a blockchain environment is from aa handful from Tier 2 Countries (countries with income pertechnology and cost perspective quite challenging and the same

capita of less than US$ 5,000). Today, FCI has over 50 members

goes for many of the national banks/non-banks representing

in emerging countries, accounting for nearly 13% of total

most of our members today. But this is already starting tomembership. We know the reasons for this growth. Since joiningchange, as these platforms are being built and subsidised by

FCI in 2013, I set an objective to achieve 500 members by 2022.

the global banks. And it is possible to integrate blockchain

We believe this is achievable, based on the significant interestin small incremental steps, together with edifactoring, andin the growth in receivables finance, especially in the emerging

expand it over time. Having members on DLT would create

countries. We believe that this growth will come from markets

efficiencies in conducting correspondent factoring business.

like Bangladesh, Indonesia, India, Philippines, Pakistan andAnd the big advantage here is the financial impact would be

Nigeria. These countries represent nearly 2.3 billion inhabitants,

less burdensome in the short term and it would certainly

representing nearly one third of the world’s population.

demonstrate FCI’s intention to innovate and prepare themembership for this new capability. Also, if FCI does not move

In most of these markets, factoring is in its infancy stage. This

forward, these new communities that have been created like R3,

represents our industry’s future, and FCI is making numerous

We.trade and others could create their own global networks thatinroads to help develop factoring in all corners of the world.

could potentially make the FCI trading network redundant.

Most populous countries | 2060 forecast

Partnerships/Stakeholders

in billions

Credit Insurers: FCI recently launched its fourth joint working
group meeting with the leading executives from the credit
India

insurance industry, focusing on how to work more closely

China

together to bring capital to SMEs in Africa and other emerging

Nigeria

markets. Credit insurance and factoring are symbiotic, as they

United States

rely on one another to provide capital solutions for SMEs. Most

Pakistancredit insurance activity in the emerging markets is conducted

Indonesia

via the public sector: multilateral institutions and ECAs. ThereCongo

is clear recognition that more needs to be done to combat theBrazilinability to underwrite the client’s customers, especially in

Ethiopia

emerging markets due to:

Bangladesh● Lack of buyer/debtor data

Tanzania● Political instability

Mexico0

12● Transparency – quality of data

Sources: UN; The Economist

Together with the African Export-Import Bank, an agreement(*) Historic estimates made using modern borders

was reached to build a new pan-African repository of payment

4

FCI Annual Review 2019

Introduction

data on SMEs. This will allow the industry to grow in markets

by the late Freddy Salinger, a past member of the FCI legal

where credible trade and payment data is sorely lacking.

committee together with Spiros Bazinas, recently retired leader
from UNCTITRAL. The convention will soon become a proper

Islamic Factoring: FCI will launch at the upcoming FCI annual

treaty and globally recognised as the standard for assignment

meeting in HCMC, Vietnam (9–14 June 2019) a new Islamic

language and rights of ownership in receivables, once it has

Factoring Chapter, which will be led by our new member, thebeen ratified by five countries and becomes a formal treaty.

Islamic Development Bank/ITFC based in Saudi Arabia. This

Much more work needs to be done to make this a reality, as

is spearheaded from the launch of FCI’s proprietary rules on

90% of all global trade is estimated to be conducted on open

Islamic Factoring. We are excited about this initiative andaccount terms by 2020.

anticipate seeing many new Islamic countries join FCI anddevelop factoring in these new markets.

Tomorrow
Our future is tied to the growth in factoring in the Emerging

Fintechs: Opportunities for the industry include the rise ofMarkets. And that’s because a local exporter in an emerging

technologies to enable the accumulation of data from ERP

country is unlikely to ship on pre-payment terms of via letterssystems direct to factoring platforms. The development ofof credit or documentary collections to importers in developed

e-invoicing is also having an important impact on the evolution

markets in the next decade. On the contrary, most of trade inof our industry. In fact, digitisation will bring many new players

the emerging countries over the next decade will be on open

into the industry, and result in a much larger playing fieldaccount and will join the rest of the world in this trend. This isglobally.

why FCI has invested in a global regional platform, where we
now have resources on the ground in the emerging markets,

Advocacy

helping lead the development of factoring in these markets.

In terms of advocacy, FCI supports the development offactoring legislation and the implementation of central bank

But what you see today you will not see tomorrow… Gone arepolicy. Very recently we were informed by the central bankthe days when loans will be relationship based solely on fixedof Bangladesh that they have prepared a policy document toassets or hard collateral which a banker can touch and feel.

launch factoring formally there. A hearing will be held shortly

No, in fact tomorrow with technologies like blockchain andand will be attended by FCI staff. We are close to formalisingdecentralised database platforms, companies will be issuing

new legal frameworks in Nigeria. And Egypt, India, Cameroon

electronic invoices on credit terms, and FIs will be financing

are all examples where successful factoring laws have beenthese intangible assets, pulled directly from a company’s ERP

implemented. FCI is taking numerous measures to raisesystem, from new types of FINTECH, who will launch electronic

awareness by organising workshops to explain to government

factoring exchanges, factoring funds, Artificial Intelligence

officials and important stakeholders the importance of(AI) led platforms, etc... We see this already happening infactoring. We also want to support the creation of sound policy

some of the developed countries today. So not only do theseand good regulatory framework for the healthy development

emerging countries need to prepare for this evolution of tradeof factoring. But we also want to ensure that the increase inon open account, they also need to prepare for the shift in how

regulations impacting the industry do not have unintended

companies will be financed in the future!

consequences.
FCI is prepared for this future. We continue to make
Unfortunately, most emerging countries do not yet haveenhancements to our already successful and proven model, inproper assignment laws and central bank policies in place toultimately helping finance SMEs around the world. With FCI’s

instil confidence for the banking and investor community, to

50 successful years behind it, leading education via the FCI

invest in factoring and receivables finance as an asset class.

Academy, coupled with the strength of our rules via the General

However, FCI continues to support the development of proper

Rules of International Factoring (GRIF), Rules of Arbitration,

assignment laws, protections of rights of third parties, and theRules of FCIreverse and Rules for Islamic Factoring, FCI has

promotion of good governance, compliance, and proper central

the confidence of its members to lead in technology, advocacy

bank policies that create a sensible regulatory frameworkand innovation. Tomorrow, in part from the fruits of our andto support the healthy growth of our industry. Recently, theour members labour, the world will witness factoring and

US Senate approved the Convention on the Assignment ofreceivables finance as the dominant form of financing trade andReceivables, a document that was to a great extent developed

working capital solutions for SMEs and corporates alike.

FCI Annual Review 20195

FCI Vision Statement & Mission Statement

FCI Vision Statement
FCI’s Vision is to be the Global Association for the Open Account Receivables
Finance Industry.
FCI Mission Statement
Receivables Finance is the core focus of the association and includes Factoring,
Invoice Discounting and other Supply Chain Finance solutions.
FCI is the Global Voice for Open Account Receivables Finance:– FCI facilitates and promotes International Factoring through a Correspondent
Factoring platform.
– FCI actively supports the growth of the Industry and works jointly with policy
makers and stakeholders worldwide– FCI promotes best Industry practices through education– FCI publishes Information & Statistics about the Industry– FCI endorses financial stability, the prevention of financial crime and respect
for regulatory compliance and conduct

Ho Chi Minh City, Vietnam.

6

FCI Annual Review 2019

Roundtable: Fraud in the changing
Receivables Finance World
It’s probably true to say that the world of Factoring and Receivables Finance is developing and changing
now at a faster rate than at any stage since its inception in modern times. This transition is being driven
by and reflects the rapidly evolving digital environment in which our Industry – and our everyday lives –operate. The opportunities and challenges that are arising from these fast-emerging technology-drivenchanges are also constantly changing. With the internet everywhere, the rise of mobile and social
technology, fintech developments are all creating a tsunami of change.
But on the other hand, some long-standing issues continue to challenge us, whether the methodology
is digital or analogue.
John Brehcist, FCI Advocacy Director (JB) has been speaking

forgetting inter-factor transfers; in a competitive market why

with a globally based panel of Industry experts and asking

would lenders release a good deal?

them to share their incisive views for the FCI Annual Review.
RM: I think also that the range and complexity of deals creates
They are:challenges and based on the nature of different documents to● Mandy Chien (MC)check, it is possible to miss key issues.

Senior Vice President, Taipei Fubon Commercial Bank,
TaiwanJB: Is there such a thing as a typical fraudster?

● David Cory (DC)
Head of Nedbank Debtor Management, Nedbank Corporate,

AH: I don’t believe there is a typical fraudster, but I do believe

South Africa

there are two main types/categories.

● Aaron Hughes (AH)
General Manager, Equiniti Riskfactor, UK● Rui Matsuda (RM)
CEO, Fondo de Inversion Comex SRM, Peru

The owner/manager with a family dependent upon the businessfor livelihood, who has cashflow problems which result inthem ‘flexing’ the rules to fix a short-term problem whichthen becomes self-perpetuating; they could be described as“accidental fraudsters”.

Are our panellists seeing these technology-driven changes
as evolution or revolution? Will they fundamentally alter our

And then the “serial offenders” who, either as a function of thesolutions, our interactions and our clients’ experiences? Whatindustry they operate in or deficiencies in their own capabilities

do they mean for FCI’s members? Let’s see what they all had toi.e. lack of financial acumen or under-capitalised balance

say…

sheets, often deliberately break the rules and in doing so gain amarket wide reputation for being categorised as ‘fraudsters’.

JB: Fraud is not new in our Industry; in my operational
management, director and consultancy roles I’ve seen

MC: In my experience, commonly observed issues that lead

it affect us over thirty something years! So, with all thisto fraud are a business whose performance is deteriorating,combined experience, why do people continue to get caught

and the involvement of non-core business elements in theirout?

activities.

DC: I think we tend to get caught because we all have sales

DC: I think they are all different, and if they were easily

targets, and we can easily disregard our valuable institutional

identified our ability to combat fraudsters would be so muchmemory in factoring companies. We override tested systems

simpler! They are often persuasive, confident, personable, andand controls, as we chose to believe our clients to ourcan be the most pleasant clients. This they do to lower our

detriment.

defences. They may test us with small deviations to see ourreaction and if no consequences are encountered – they are

AH: There are a number of reasons, but they often focus around

often encouraged to act.

insufficient due diligence on the people / management team(not fully appreciating their track record), making same day

RM: Yes, it’s not always a new customer that starts a fraud, indecisions for prospects without necessarily having sufficient

general, they will test us with good documents at the beginning

information on which to base a good judgment. And notof the relationship and then start the fraud later.

FCI Annual Review 20197

Roundtable

From left to right:
Mandy ChienDavid Cory
Aaron Hughes
Rui Matsuda

JB: I certainly see the two types of fraudster, the accidental

AH: Overall, I would say easier. Whilst there are no newand the professional; and indeed, the professional can adopt

types of fraud, what has changed is the speed with which itvery different approaches; some aggressive and demanding,occurs. Lenders are offering same day sanctions/approvals

some gentle, friendly and persuasive! But when fraudin competitive situations. Technology is driving this quicker

happens, it seems to me that the attitude towards it and thedecisioning and in turn fraudsters are recognising that not all

sanctions against it can vary significantly from country tonecessary due diligence may be undertaken. There is a blind/country; why is there such a disparity in response?

soft spot that exposes lenders. What compounds this is thatmany users are experienced and may understand the product

DC: In our country, civil and criminal procedures have long lead

dynamics better than lenders believe.

times. Success rates are low. Civil process is often subject todelays by lawyers, securing court dates can be problematic and

RM: I think digitalisation in general can help protect you, forthe defendant has time to move assets while the passage ofexample in the use of a Blockchain where the individual steps

time also creates difficulties with witness memories. Criminalof a transaction are recorded in an independent tamper proof

procedure is dependent upon the police investigating properly,

sequence.

and white-collar crime is not always taken seriously especiallywhen it impacts so called rich banks. Investigators and

JB: Taking up RM’s point do you believe Blockchain is aprosecutors are overworked, and this leads to drop outs andsolution to fraud? If so, why? If not, why not?

delays.
MC: Blockchain certainly ensures that the data in the chain
RM: Unfortunately, whilst it’s the case that the law can give youis secure and immutable and that’s a positive. Unfortunately,rights in a fraudulent situation, it is often difficult to pursue awhat it doesn’t and can’t do is to ensure that the data is correct

fraudster, especially if the situation is a cross border one. For

and true in the first place.

example, it’s very hard to take action and get a fine in the USA.
AH: I don’t believe that Blockchain is a solution to fraud. The
AH: I think for more serious offences it is difficult to get thereason being that collusion is a key way in which some of theauthorities (police etc.) to engage in investigation because

largest frauds have been perpetrated and as such collusion

whilst the fraud may be high value, it is in itself not material

remains a key risk even with blockchain delivery/solution. That

relative to other types of fraud they are investigating. Also,

said, I imagine that evidence arising from a blockchain based

trying to compile a case and present it in such a way that a jury

fraud would be much easier to gather and much more damning

could understand is difficult given the lack of knowledge manyon the individual parties than current paper-based evidence

people would have in relation to receivable financing. Given the

trails, precisely because it cannot be changed.

recent dent to banks’ reputations post the GFC, I have heardthat many people are less than sympathetic to losses that

JB: It does appear that there remains a garbage in garbage

banks incur.

out problem – but that said, anything which makes it harderto defraud has got to be part of the solution; just as long as

JB: This combination of anti-bank sentiment, the idea of

people don’t believe the hype that Blockchain is a panacea!

victimless crime and a lack of resources to pursue is certainly

So, recognising there’s no such thing as an absolute safety

a challenge I hear in many countries; it’s for sure somethingnet, what’s your single best piece of advice to avoid fraud?

for the Industry’s advocacy effort to consider. Moving on, do
you think the general move to digitalisation is making fraud

RM: If you buy the product as a trader, and handle all theeasier, harder – or just different?

process, you have the conditions to be able check the quality,
delivery etc and then finance. But if you only finance, your risk

DC: It certainly makes fraud different, but that said we still get

is higher. So, for example, a blockchain approach does in somefictitious invoices, we still find that beneficiary accounts areways improve control of the process.

being intercepted. Some things remain the same!
MC: For me the key issues are getting KYC right and ensuringthat your on-going monitoring is done properly and effectively.

8

FCI Annual Review 2019

Roundtable

DC: I agree; it’s very important that you know your client, and

JB: Thank you to you all for sharing these thoughts. There’s

however tempting it might be, don’t ever override your controls

never going to be a complete safeguard against fraud,

unnecessarily.

but KYC, DD, verification, monitoring, trend analysis,
mathematical and statistical tools can all help.

AH: Yes – and that means having complete, suitable andadequate due diligence when commencing/offering a facility,

But for me what is key to have trained staff who know andensure adequate monitoring and control for in life facilities,

understand the issues, can spot the signs and can outsmart

have appropriate division of responsibilities internally andthe fraudsters.

critically examine client motivations and strategies. Ensure
contractual requirements are fulfilled – obtain regular financial

Because fraud is never just about the immediate loss; it

information, reporting reconciliations etc. And whilst all of thecan make organisations and people fearful, risk averse,

above will help safeguard against fraud – all lenders need that

distrustful and it is bad for business. It’s essential to minimise

additional element – luck!

that risk. And as AH says: Good luck!

FCI Annual Review 20199

Developments in Africa
Author: Kanayo Awani, FCI Africa Chapter Chair, Managing Director,
Intra-African Trade Initiative, African Export-Import Bank
Africa witnessed growth of 2% in 2018 at EUR 22.1 billion.

In Kenya and Zimbabwe, bills on Movable Property Security

South Africa remained the continent’s dominant player withinterests that were enacted in 2017 impacted factoring businessvolume share of 80% followed by Morocco (15%) and Egypt

positively during 2018.

(2%). Mauritius and Tunisia each accounted for 1%.
In Mauritius, the Government launched the SME Factoring
Notwithstanding the fact that Africa accounts for only

Scheme with the objective to provide financing to SMEs. The

1% of global volume, the continent witnessed significant

implementation of the Scheme is through Non-Bank-Financial-

developments in many areas that portend significant potential

Institutions (NBFIs) that provide factoring services. Cim Financeespecially relating to the legal and regulatory environment, andis the sole NBFI participating in this scheme.

other government interventions which have been key for the
emergence of new factoring businesses in Africa.

Promotion and Awareness
During 2018 Afreximbank and FCI continued to play a leading

Legal and Regulatory Developmentsrole in promoting awareness about factoring in Africa. They

Egypt recorded the highest level of activity attributedorganised factoring promotional conferences and workshops

largely to the passing of a revised Factoring and Leasing Law

in Senegal in February and with the Egyptian Factoring

by Parliament in August 2018. Furthermore, the Egyptian

Association (EFA), jointly organised another event in September

Collateral Registry (ECR) was activated to the benefit of smaller

in Cairo on the sidelines of FCI third quarter Executive

and less-established SMEs, whose movable assets most often

Committee meeting.

constitute their main or only available collateral to lenders.
The Egyptian factoring market volume grew by 24% y.o.y.,

Furthermore, NEXIM (collaborating with Afreximbank and FCI

which was reflected in the number of new entrants such as EFG

as Facilitators) organised a targeted seminar for regulators, law

Hermes Factoring and Commercial International Bank (CIB).

makers, commercial banks, central banks and factors in Nigeria
on the sidelines of Afreximbank Annual General Meeting in

In Nigeria, a Public Hearing of the Factoring Bill happened

Abuja in July 2018.

in July 2018 at the House of Representatives under the
auspices of the African Export-Import Bank (Afreximbank),

Membership Mobilisation

Nigerian Export-Import Bank (NEXIM) and FCI. The House of

The foregoing developments translated into 9 new members,

Representatives subsequently passed the Bill and awaiting

drawn from Egypt, Morocco, Nigeria, Mauritius, Cameroon,

approval from the Senate. Furthermore, Afreximbank and

Zimbabwe, Botswana and the Republic of Congo, joining FCINEXIM continued to engage the Central Bank of Nigeria (CBN)

during 2018.

advocating for a favourable regulatory environment including
putting in place regulatory guidelines for factors as well as

Education

foreign exchange guidelines that allowed for open accountAfreximbank continued its partnership with FCI and themode of payment. Noteworthy is the fact that the CBN issued

University of Malta and successfully organised the 3rd edition

an operating license to Factoring and Supply Chain Financeof the Certificate of Finance in International Trade (COFIT)

Limited with exclusive focus on Receivables Financing.

program. In addition, Afreximbank sponsored 100 free
e-foundation course licenses to African regulators from Egypt

The Organisation for the Harmonisation of Corporate Law

and Nigeria.

in Africa (OHADA), a treaty involving 17 countries in Central
and West Africa, taking inspiration from Afreximbank Model

Regional Director Africa

Law, has also made progress towards developing a uniform

Afreximbank and FCI are finalising the process of hiring a

act of factoring to be adopted by its member states. In 2018, a

Regional Director Africa to assist in implementing the Africa

working group was formed which developed a draft uniform act

Chapter’s activities.

on factoring. After its review by member states, the Council of
Ministers also requested inputs from the two regional central
banks in October. Consultative meetings are being held withthe central banks with the expectation that the uniform act will
come into force and be adopted by October 2019.

10

FCI Annual Review 2019

References:– The Egyptian Factoring Association– Unifactor (Tunisia)– CIM Group (Mauritius)– Olympia Factors (Botswana)– Harare Receivables Exchange (Zimbabwe)

Americas:
stable and growing market
Author: Alberto Wyderka, FCI Regional Director Americas
As part of the strategic plan developed together with the FCIMost probably in some of those arguments we can find

Executive Committee in June 2018, FCI’s presence globally has

the reason why after years of seeding, plenty of meetings,

been expanded. The Latin American and Caribbean Chapter

conversations to support them in starting offering full service

was officially enlarged in January 2019, renamed as FCI`sinternational factoring as the most efficient way to service their

Americas Chapter by also including the US and Canada.

SME´s clients performing trade, with mitigated risk, as well asother options of account receivables financing, very important

In the 2018 Annual Review I wrote that: “SME finance hasbanks decided to join FCI. As well as some others, suddenly

started to become a priority focus on the policy agenda inrequesting presentations and information about international

most Latin American and Caribbean countries, and manyfactoring. This is good news.

Governments as well as Financial Institutions are trying
to find different sources of financing other than traditional

Surely for that reason, we are seeing that in several countries

lending” and that: “Young and innovative SMEs generally havein Latin America the number of factoring companies is growing

high financing needs, especially those that decide to tackle

at a slow pace, but hopefully this trend will stay. This positive

international markets”; and certainly such comments stilldevelopment will contribute to the expansion of the knowledge

remain.

of international factoring and the maturing of markets.

As an exaggerate abridged comment on the economic features

This is the case of Perú (5 members), Chile (7 members), Brazilof the region, let me say that Latin America is heading for(3 members), Dominican Republic (3 members), and hopefully

its second year of recovery in 2019, with a more generalised

this trend will be followed in other countries.

improvement at country level. However, some risks remain andcould affect the economic trend of the region. So, this is theBased on FCI statistics, Latin America and the Caribbean now

environment where the SME´s and also Corporates will play

occupy the 3th position in the total world factoring volume

their domestic and trade games.

with EUR 121 billion, a 4% share of the total world factoring
volume, where Argentina (+34%) and Chile (+16%) lead the way,

What is interesting as well as incredible, is that banks, and I´mwhile Brazil and Colombia show negative figures (-6% and -7%

referring to banks and not to factoring companies, have realised

respectively).

that their foreign trade business only holds on transfers, whichin general represents 90 % of their trade business. So, what has

North America fell 2% reaching a volume of EUR 90.1 billion,

happened to them that just by now they are seeing a reality that

where US remains stable with a 1% growth although Canada

has been happening for a very good number of years?

reports a -58%.

Could it be that owing to the very low fees they apply on

2019 will be a challenging year for the Americas Chapter.

transfers, they need to generate very high volumes? Could it

Actions will be focused on three main targets:be that out of transfers their revenues come from traditional● Support current members with low or null volume in two-

lending, whose risk is not always easy to control, and in somefactor business in order to consolidate its continuity in FCI

countries due to the limited information, banks avoid to offer

instead of abandoning us due to frustration in the business.

financing to smaller companies? Or banks finally decided toSuch aim can only be achieved by staying close to them,leave ¨the comfort zone¨.

making periodic visits and providing support with training
and education.

Whatever it may be, banks and financial institutions are● Identify new potential members in the US willing to offer

exploring solutions to support their clients and enlarge theirinternational factoring outside their shareholding group.

portfolio, providing financing with a more mitigated lending

FCI would like to see that they can support with service

risk. And here international factoring and SCF start playing

to other members from the rest of the world. We will be also

their roles, and start being considered as new products to beworking in order to increase the number of members indeveloped when having to support the international businessdeveloped by SMEs.

Canada.
● Continue the marketing actions to attract new members
in LA & Caribbean, with the hope of achieving new 		
affiliations coming as a result of the efforts made and thebudget invested in recent years.

FCI Annual Review 201911

The North East Asia region is growing
Author: Lin Hui, FCI Regional Director North East Asia
In the midst of global uncertainly, the North East Asia region

than 94%, reflecting more banks support for the transparency

ended 2018 with moderate growth and the appearance of calm.

of FCI’s two-factor scheme. Similarly, several Hong Kong-based

FCI data indicates that the entire North East Asia region grew

regional banks also were involved in a large receivable financing

by 5% to EUR 581 billion in 2018. This represented 21% of thefraud case.

total world factoring volume – a level similar to 2017.
Compared with other regions, North East Asia has the mostChina remained the world’s largest single factoring andbanking members in FCI. In Taiwan, for example, all factors arereceivable financing market. Solid domestic demand continued

banks and over half of the market’s banks are members of FCI.

to drive robust growth even as the market faced challenge

But good banks are not automatically strong factors. Duringfrom overseas. The government’s efforts to rebalance thethe past 30 years, banks in the region have been studying the

economy fueled private consumption. Rising labor demand

traditional factoring industry and applying their lessons toand wage increases also helped lift consumer spending. These

strengthen the credit and operation side of their factoring andshifts reflected China’s progressive transformation from anreceivable financing business. Meanwhile, the region’s banks

export-driven to a consumer-led economy. Data from the China

have also extended factoring upmarket to serve larger-scale

Banking Association shows that China’s factoring sector mirrors

clients, expanding the industry that was once stereotyped as athis change. Over the past year, China’s international factoring

purely SME service.

volume dropped by half while domestic factoring has continued
to grow. The Bank of China, once a leader in international

Big data, Fintech, and Blockchain have become buzzwords

factoring, recently combined its factoring and supply chainthat are spreading across the region. During the last quarter

finance teams. The bank has refocused their factoring teamof 2018, two multi-bank blockchain trade finance platforms

on rising supply chain finance demand and is likely to pursue

landed in Hong Kong and China. In Hong Kong, Etradeconnect

reverse factoring that favors domestic suppliers.

is sponsored by the Hong Kong Monetary Authority. In China,
the China Banking Association has backed the China Trade

Japan remained the region’s most mature market, reachingand Finance Interbank Trading Blockchain Platform. TheseEUR 49 billion in 2018. This marks a rebound to Japan’s 2016

developments are just two examples of the way that technology

level after a 30% drop in volume during 2017.

is changing our industry landscape in the North East Asia
region. FCI is working closely with its regional members to share

Beneath the veneer of stable, moderate growth, the North Eastand support their interests and concerns in this fast-changing

Asia region was marred by several disruptions. Hit by some

digital era. In this role, FCI will continue to facilitate andlarge fraud cases, we saw 17% drop in Taiwan’s total factoringpromote the sustainable growth of the industry.

volume. However, its two-factor export volume jumped by more

Shanghai, China. (Hit 1912/shutterstock.com)

12

FCI Annual Review 2019

South and South East Asia –the emerging region
Author: Lee Kheng Leong, FCI Regional Director South and South East Asia
South and South East Asia (SSEA) is made up of two dynamic● Singapore on the other hand is the center of excellence ineconomic groups, the South-Asian Association for Regional

ASEAN, its FCI two-factor volume of USD 1.273 billion is in the

Cooperation (SAARC) and the Association of South-East Asian

top 3 in FCI. However, whilst it is a good showcase for ASEAN,

Nations (ASEAN). There are 18 countries in these two groups,

the component of the Singapore economy is different from

8 for SAARC and 10 for ASEAN.

many of the ASEAN countries.

SSEA is an emerging region with a combined GDP of USD 6.07

Many of the countries in SSEA region are benefiting from thetrillion. Many countries in this region are transforming frommoving of higher manufacturing cost in China to low-costagrarian economy to manufacturing and export-oriented

countries in SSEA. As the manufacturing costs in China areeconomy, exporting primarily to US, Europe and North Asia.

increasing, low-cost manufacturing companies are moving

FCI is present in 10 of these countries with 27 members. As

to SSEA countries. Such manufacturing companies exports

many of the countries are untapped or under-tapped, there

primarily to the US and Europe which will result in excellent

is great opportunity to extend our wing in this region both inopportunities for export factoring in this direction. SSEA is

numbers of countries and in members.

therefore a high growth area for export factoring. The factoring

This is a region with great diversity in languages and laws.

volume in SSEA has been increasing as shown by the CAGR of

However, many of these countries are proficient in English. As

18.29% over the last 7 years.

such, it would be much easier to embrace them into the FCI
community.

The evolution of factoring volume in Southand South East Asia

in millions of Euros

While some countries such as Singapore, Malaysia, India and20,00059,96830,000domestic and international factoring.

56,21940,000in future, thereby creating a conducive environment for both

51,866concerted effort by IFC many of them will enact such a law

47,67950,0002015

last year which paved the way for growth in factoring. With

48,20660,0002014

70,000

The Philippines and Thailand for example have passed the law

20,44080,000which among other things enable assignment of receivables.

2013

90,000as the IFC has been promoting the secured transaction law

18,502wanting in many of them. Nonetheless, there is a silver lining,

2012

Sri Lanka have established a law on assignment, this is found

10,0002018

its two-factor volume which has grown substantially, to become

2017● India is the center of excellence for the SAARC as shown by0
2016

There are two centers of excellence in SSEA

one of the top 11 of two-factor countries in FCI. It will be a good
showcase for countries such as Sri Lanka, Bangladesh, Pakistan,

However, more work needs to be done by FCI in SSEA. For

Bhutan, and the Maldives.

those countries where factoring is possible, we need more
promotional conferences and training to get them to beeffective in international factoring. In this connection, FCI
together with IFC has conducted export promotion conferences
in many of these countries such as Thailand, India, Cambodia,
Vietnam and the Philippines. Greater advocacy work willneed to be done with the central banks in countries such as
Bangladesh, Pakistan, Bhutan, Maldives, Myanmar and Laos
where factoring is still not approved by the respective central
banks. We will be conducting a workshop with the Central
Bank of Bangladesh and banks in Sri Lanka this year and will bereaching out to the other central banks in this region as well.
We will continue to work with like-minded organisations like IFC
and ICC to promote export factoring in this region.

Mumbai, India.

FCI Annual Review 201913

CEE, SEE and the Middle East –A region with promising future
Author: Betül Kurtulus, FCI Regional Director Central,
Eastern and South-Eastern Europe and the Middle East
Central & East Europe (CEE), South East Europe (SEE), and thesuccessful export factoring country in the region with 18 active

Middle East (ME) region represent approximately 30% of total

members and holder of the title of the best export factoring

FCI volume in 21 countries and 90 members. This area consists

company for the last ten years, is expected to make up for theof countries with different political and economic structures,loss it suffered in 2018 in the near future. This is confirmed bydifferent economic challenges, infrastructures, commercial andthe structural reform decisions implemented by the Central

legal rules, and opportunities. CEE is the region where mostBank of Turkey.

countries are in the European Union. Although this region isaffected by European Union decisions, it draws attention to its

We do not see an increase in transaction volume as of the end

performance above the average growth rate when countries'of 2018 from the Middle East region. However, it should be

own economies are considered only. The SEE region consists

noted that FCI has implemented two important products forof the Balkan countries, Turkey and Russia and its neighbours.

the region. We see this both in the way the transactions are

The rapid growth in the Balkan countries, will unfortunately

made, as well as volumes in large amounts. After the approval

not be observed in Turkey this year. The Middle East region, onof the Supplemental Agreement for Islamic factoring by thethe other hand, gives hope for the use of new products and the

FCI Council, FCI will be able to have new active members from

economic development of the region, which has completelycountries in the region where Sharia’s Law is partly or entirely

different dynamics within FCI.

applicable.

Looking at the data for 2018, Slovakia recorded an increase of

Without a doubt, FCIreverse also will be fully Sharia compliant

over 50% in the CEE region. Hungary, Lithuania, and Polandwith minor modifications in the agreements. This will mean toare countries with a growth rate of over 20% compared to

FCI, a new “horizon” with new members, new suppliers, new

the previous year. Russia is among the countries with highdebtors and new business from both the ME region and Turkey.

growth rates of 30%. Turkey, one of the largest export factoring

This transaction increase will lead to transaction increases incountries in the region, closed the year with a contraction

CEE and SEE regions.

of 22%, contrary to previous years' performance due to theeconomic crisis in 2018. Exchange rate fluctuation in the

For FCI's new product, FCIreverse, our pilot members arecountry in 2018 has a significant influence in this shrinkage.

continuing their studies in this region. The members aresupported in their studies by FCI with their consultants, Demica

Turkey is one of the biggest economic countries in the region.

with infrastructure, software information and structuring. In

Although a growth rate of 1% was targeted in 2019, the decline

2019, we expect to see the new products to increase turnoverin domestic market demand affected the export orientation

throughout the region. All FCI members in the entire region ofof almost all companies. This trend has been interpreted as

CEE, SEE and ME countries will help reaching the goals.

positive for the increase in export transactions in 2019. The

As FCI, our goal is to move our trading volume, which has turned2020 growth rate is targeted as 4%. Turkey, which is the mostthe charts up in 2018, to further increase in 2019.

Bratislava, Slovakia.

14

FCI Annual Review 2019

Factoring in the EU – A successstory in an uncertain context
Author: Françoise Palle-Guillabert, Chair EUF
2018 figures for EU Factoring: 10 years of growth

For the year to come, the European factoring and commercial

Data collected by the EU Federation for 2018 shows that

finance industry has many files to deal with: upcoming report on

factoring is developing much faster than the EU economy. This

supply chain finance, law applicable to the third-party effects

performance confirms the growing popularity of this form ofon assignments of claims, finalisation of Basel III, digitisation offunding. Factoring turnover in 2018 for EU countries exceeded

the economy, assessment of the late payment directive.

EUR 1.7 trillion, with a year-on-year increase of 8%. Factoring
volume has increased for a 10th year in a row, confirming its role

In larger economic and political perspectives, the environment

as a key financial resource supporting companies‘ growth: todayof the factoring and commercial finance industry is currently

factoring is clearly identified as secured short-term financing

impacted by significant disruptions – digitisation with the

product committed to the real economy and employment

emergence of new client relationships, new processes,

in Europe. The dominant type of factoring was domestic,

new players, increasing awareness of corporate and social

representing 80% of total turnover. The total number of active

responsibility, the evolution of international trade – thatclients in 2018 was 208,351 (an increase of 8%).

challenges the European governance framework.

The high level of concentration shown by the EU factoring

In political viewpoints, we are in an uncertain context with themarket remains unchanged, with the top five countries in 2018

Brexit. To date, sketching the characteristics of the European

representing 75% of the total EU market: United Kingdom

market after Brexit is a very complex exercise.

(18.5%), France (18.5%), Italy (14.3%), Germany (14.1%), andSpain (9.6%).

Also, we are on the eve of the European elections. EUF willtake the opportunity of these elections to raise awarenessThanks to these good results the European factoring andabout factoring and to promote its benefits for the economy.

commercial finance market represents 2/3 of the world market.

In this objective the EUF White Paper has been updated. It
demonstrates that the European factoring and commercial

The challenge for EU Factoring: continue to progress in an

finance is a real success story, with very low loss levels. From

uncertain context

a regulator’s perspective this implies that this form of funding

In 2018, the factoring and commercial finance industry had toshould be associated with a lower risk weighting and a lower

deal with major prudential and legal issues (Anacredit, NPL,

cost of capital.

Basel III, Rome 1, SMEs definition).
In the coming months, the European factoring and commercial
The EUF has lobbied the European institutions on all the issues.

finance has to transform these disruptions and uncertain

The most remarkable success is that we have obtained a better

context into opportunities: renewed offers, enhanced risk

calibration of NSFR for factoring with assimilation to tradeawareness, set-up of a new factoring model. And constraints

finance for the needs of liquidity calculation. This real successcan be overcome: a European status for factoring companies

will allow EU factoring companies and their mother bank to

could lead to lower solvency requirements and comfort thesave a lot of money.

recognition of short-term specificity.

Paris, France.

FCI Annual Review 201915

Global Economic Prospects
John Brehcist FCIs Advocacy Director, takes a look at the future for the global economy
Last year when I reported on the global economic environment,that many of these debts are at roll over stage, they are being

there had been a generally positive sentiment about the likely

refinanced at more expensive rates. Combine this with a rising

performance of the global economy in 2018, given that 2017

dollar, then the environment becomes immediately more

had resulted in a stronger than anticipated results. Theredifficult.

was a sense that an upturn in investment was going to lead to
productivity improvements, higher manufacturing volumes andDownward revisions in developed economies are also

greater international trade.

being driven by concerns in the Eurozone, with German
manufacturing weakness and Italy where concerns about both

Although continued growth was experienced in 2018, it did notsovereign and financial risks have affected domestic demand,reach the levels anticipated; there has being a growing sense

in wider Europe with a weakening financial market sentimentthat the rate of recovery has peaked and that growth over thecaused by Brexit fears and a contraction in Turkey now thoughtcoming year will be rather more muted.

likely to be more severe and protracted than anticipated.

For example, the IMF expects global growth this year of 3.5%,

The World Bank shares the IMF’s concerns and anticipates adown from 3.7% in 2018 and from the 3.7% it had forecast for

reduction in overall global growth rates. It cites as evidence the2019 back in October.

fact that “International trade and investment are moderating,trade tensions remain at elevated levels, and financing

When it delivered these forecasts at the World Economic

conditions are tightening. Amid recent episodes of financial

Forum in Davos, Switzerland, the fund left unchanged its

stress, growth in emerging market and developing economies

prediction of 2.5%. for U.S. growth this year, but it lowered thehas lost momentum.”

growth outlook for the combined eurozone countries from 1.8%
to 1.6%.

It believes that downside risks have become more acute, andthat both financial market pressures and trade tensions could

It’s their belief that growth in emerging-market countries willcontinue to grow, negatively affecting overall global activity

slow to around 4.5%, marginally down from 4.6% in 2018. The

levels.

IMF forecasts that the Chinese economy, which is now thesecond largest behind the USA, to grow at 6.2% this year, down

The United Nations is only modestly more sanguine about thefrom 6.6% in 2018 and in fact the slowest projected rate since

global position, and that perhaps because they tend to take a

its predictions in 1990.

longer view than the IMF and World Bank. As António Guterres,
their Secretary-General states: “While global economic

The IMF are not alone; there is a growing consensus regarding a

indicators remain largely favourable, they do not tell the wholematerial softening of growth with both The World Bank and thestory. Our World Economic Situation and Prospects 2019

Organisation for Economic Cooperation and Development also

Report underscores that behind these numbers, one can discern

downgrading their world growth forecasts.

a build-up in short-term risks that are threatening global
growth prospects. More fundamentally, there are concerns overThe general perception is that rising trade tensions pose a major

the sustainability of global economic growth in the face of risingrisk to the world economy. This is exemplified by the United

financial, social and environmental challenges.”States which has levied import tariffs on steel, aluminium and abroad range of Chinese products, an approach which has led to

So how does all this translate to numbers? As I usually do for

immediate retaliatory responses.

this article, I have taken a look at the major economic forecast
sources and compared their figures to come to a combined

As the IMF Chief Economist Gita Gopinath puts it, somewhat
understatedly, “Higher trade uncertainty will further dampen
investment and disrupt global supply chains.”
And of course, it’s not just about trade sanctions; interest rates
in the U.S. and elsewhere are rising and these are affecting
developing market economies that extensively borrowed whenrates were ultra-low following the 2007–2009 recession. Now

16

FCI Annual Review 2019

picture of the overall position.

Consensus Actual 2018 vs Expected 2019 GDP Growth rate predictions

2018 Consensus Actual

5
4.5
4

2019 2019 Forecast

3.5
3Coming closer to home from this

2.5
2macroeconomic perspective, when we

1.5

compare the growth of the global economy

1with the growth of our industry, we again can

0.5

see the close relationship that links the twovariables.
GlobalHigh

GlobalAverage

GlobalLow

Emerging markets
High

Emerging markets
Average

Emerging markets
Low

Advanced markets
High

Advanced markets
Average

Advanced markets
Low

0

Global GDP growth % vs Factoring growth %World GDP
30%
25%

€ FCI FCF

20%
15%

the two are closely positively correlated, with a

2018

2017

2016

2015

2014

2013

2012

2011

to align with the relationship which shows that2010with GDP Growth; this year’s figures continue

–10%
2009

Factoring and Receivables Finance Growth

– 5%
2008

be familiar with my comparative analysis of

0%

2007

Regular readers of the Annual Review will now

5%

2006

10%

high beta coefficient (that is when the economy
grows, factoring grows rapidly, if it contracts,
our volumes will fall).

Source: Roundwindow Consultancy

GDP growth % vs Factoring growth %

40%
35%
30%
25%
20%
15%

The high level of correlation between GDP

10%growth and Receivables Finance growth5%

is perhaps not such a great surprise; we0%finance the real economy and we support real

-5%businesses. It’s nonetheless refreshing to seethat even at the global level, this very basic

– 10%
-2

-1

0

1

2

3

4

5

relationship is clearly demonstrated. I wish
all FCI members every success in 2019 andSource: Roundwindow Consultancy

beyond.

FCI Annual Review 201917

Global Industry Activity Reportfor 2018
By John Brehcist, FCI Advocacy Director
The Global Industry Annual Report GIAR for 2018 continues

Product distribution – Market average

to follow the path of a programme that was initially set up in

30%

seeks organically to develop this work with a wider set of data,

20%

providing us the opportunity to look at the evolution of the

10%

Global Receivables Finance Industry through time.

0%

GIAR tries to provide a unique analysis of our Industry; as wellas investigating the quantitative and numeric aspects of the
global business, in this project we also consider a wide range of

38%

14%
6%

Invoice
Discounting

data on country turnovers. Accordingly, the GIAR project

42%

ReverseFactoringof Supplier
Finance40%

Non-recourse
Factoring(with credit
protection)

50%of the annual effort undertaken earlier in the year to collect

Recourse
Factoring(without credit
protection)

2009; again, this iteration of the survey builds on the results

the qualitative elements which give the opportunity to assess

Over the year, there appears to have been an increase in non-the general sentiments and opinions of its key participants.

recourse and supply chain finance business at the proportionate
expense of recourse and Invoice discounting.

Quantitative Analysis
At the time of writing, unfortunately not all the data I would

Of course, the relative proportions in individual countries

wish to analyse for GIAR is currently available. Accordingly, it

continue to vary and the individual figures will reflect thehas not been possible for me to use all of the statistical tools

local market conditions, as well as the legal and regulatory

usually employed to process the information that has beenenvironments; this chart shows what a “typical” country

received, so the outcomes which are quoted may be subject todistribution looks like.

further revision through time. However, I am confident that theoverall picture will be close to the final outcomes and that theIt appears that the position of Reverse Factoring or Supplierinformation given conveys a realistic and credible picture of the

Finance may have grown this last year to a typical 14% from 12%

global receivables finance environment.

the year before thus providing a market entry opportunity for
FCI’s new solution FCIreverse.

With that caveat, I will follow the same pattern of review aslast year and explain what assumptions are being made inDomestic and International Businessthe circumstances and will first look at some of the numeric

The survey continues to track the balance between domestic

information and consider the deductions, we can make.

and international business. Where reported, the proportion ofInternational Factoring by country was around 22%, domestic

As ever, the principal challenge for the survey continues to

78% – so, as discussed above, a typical country would present

be that in many countries the infrastructure and capability tothese levels. These proportions again are virtually unchanged

collect and analyse data varies dramatically – and so the levels

from those reported in the last three years, again within theof detail that individual markets are able to provide remains

tolerances of uncertainty of the (as yet) incomplete reporting.

highly variable. One of the real challenges for the RF Industry is
to help people everywhere to understand the importance, value

Domestic and International Businessand power of information in our advocacy discussions and the
key requirement therefore of collating accurate information.

22%● Turnover Domestic

So, here we are; the initial findings of the 2018 GIAR Report…
Product analysis
Information received indicates that the main product solutions● Turnover International
78%

have not changed in ranking and these continue to be recourse

Industry dynamics

factoring, non-recourse factoring, invoice discounting and2018 GDP figures from the IMF are only yet at first estimate

reverse factoring. Using available data and trend analysis welevels and are not finalised, but using the initial available figures

can be reasonably confident that the split will be very close toallows us to look at the GDP penetration of the Industry; wethe figures shown:

again appear to be operating close to the 4% mark on a global

18

FCI Annual Review 2019basis (which compares to around 11% for Europe where the44.8 % (45%, 46%), bank owned subsidiaries 32.4% (25%,

Industry is still most established).

27%) whilst Independents have lost ground 6% (from 13% and11%) respectively. Again, whilst these interim figures may yet

Using actual reported advances where they are available,

be adapted by final reports, the domination of banks at the

imputed average days outstanding calculations and trend

expense of independents is quite clear.

analysis indicates that the first estimate for total Industry
advances against outstanding invoices is in the order of EUR 410

Qualitative Analysis

billion at the end of the year, up around 5%.

One of the things that makes the GIAR survey unique is in it
providing an ongoing record and analysis of the perceptions

Client numbers are estimated to have reached around 730,000;

within the Industry on a wide range of topics and trends andagain, this figure is currently derived from actual reported

their potential effects on the Industry and its development.

numbers and trend analysis. This figure has a relatively highlevel of uncertainty because it combines both whole turnover

Perhaps the first and key elements to consider are Awarenessand spot level types of relationships – which are of course not

and Acceptance: The responses show that in general there

exactly immediately comparable numbers!

continues to be considerable opportunity to build and develop
the impact of the Industry although (based on the statistically

The estimated number of debtors has grown to an estimatedsignificant sample to date of 50 countries that have responded)17.6 million; as with other figures, this figure is derived fromthe position is marginally improved from the last survey.

trend analysis, the actual numbers reported and imputationfrom actual debtor number to turnover ratios. Of the estimates,

Awareness Level

Acceptance Level

this too has a higher degree of uncertainty, as debtor numbers
are highly sensitive to market structure and conditions.

12%

16%

10%

22%

Direct employee numbers are also estimated to have grown in● Low● Mediumsimilar proportion to around 76,000. To get to this figure, we● Highapplied trend analysis to the actual client to staff ratios in both72%

emerging and developed markets where known and applied68%

these on a mean basis to the countries where staff data is not

At the same time respondents continue to demonstrate acurrently available. It’s likely that growth in China will provehigh level of confidence and optimism that the Industry has

to be a driving force in this ongoing expansion, but growth isthe capacity to continue to grow its role in supporting the real

globally apparent as Factoring generally remains a relatively

economy on a global scale. Similarly, with the demand outlook,labour-intensive service.

the overall picture is strong.

The total number of substantial scale companies active in theDevelopment Outlook

Industry is estimated at around 3,250, with the total number

Demand Level Outlook

2%of businesses being in order of 7,000. Again, this figure is a2%

challenging data point to estimate as operations vary from31%

large scale bank owned operations down literally to so-called● Negative● Neutral

50%“Mom and Pop” operations.

● Positive
48%

67%

Average turnover per client is considered to have remained
unchanged in scale and to be in the order of EUR 4 million; so, in

However, in both of these categories there has nonethelessthe Industry we continue to be mainly dealing by number with

been a very slight overall reduction in confidence, and thisSME businesses at the smaller end of the spectrum.

caution is also demonstrated both in expectations of turnover

Asset Based Lending data is not yet generally available to draw

and in Industry profitability.

firm conclusions, but anecdotal evidence suggests that it isstill generally showing limited growth outside the USA which

Turnover Level Outlook

Profitability Level Outlook

is still far and away the largest market. Accepting there may
be some underreporting (because some key providers may
51%

60%

40%

20%

Negative

8%
0%

9%
60%

ABL within the Industry.

Neutral40%

only relatively marginal growth and increased penetration in

41%

34%

20%

Industry environment), it still appears that there is currently

57%

Positive0%

be bank lenders which operate outside the direct Receivables

The Industry continues to demonstrate a very high level of

These responses suggest that respondents remain overall

supplier concentration. Where the figures are available, thesanguine about prospects but recognise that there are potential

top five concentration ratio (CR5) was reported as 82.5% of theissues facing their operations in the current global climate. And,

market (82% in 2017, 84% in 2016). Bank divisions represent

risk management continues to be a key focus for providers, so

FCI Annual Review 201919

the participants responses to questions on their outlook forfactoring to fund international business. Whilst they are stillclient and debtor risk in their markets are important.

generally concerned, respondents are generally more relaxed
this year about the negative potential that protectionism might

Again, the majority of respondents appear to believe thehave. Perhaps again the fact that the dire predictions regarding

situation is relatively benign and neutral, but in each case the

US and Chinese protectionism that were feared in the press

negative outlook responses have grown over the last year.

and forecast by raconteurs last year have (at least not yet) not
created a real world degrading impact for most.

Client Risk Outlook

21%

Debtor Risk Outlook

16%

21%

12%

● Negative

Is there a Shortfall

Could Protectionism

of Factoring to fundwiden any Trade FinanceInternational Business?

Gap even more?

● Neutral● Positive
63%

26%

27%

31%

34%

● Yes

67%

● No

For the last couple of years, we have extended the range ofquestions for respondents in co-operation with the AsianDevelopment Bank. The two organisations have a common● Don’t
47%

know

35%

interest in looking at the impact of regulation, credit and capital

Finally, we also asked for respondents’ perceptions regarding

issues and the role of technology in developing the Industry.

the potential impact of fintech on industry processes. It’s achallenge to the fintech industry that overall the RF industry

The responses this year suggest that participants have generally

has noticeably lost confidence in the value of fintech inagain been feeling an increasing effect of AML/KYC regulations

its potential ability to improve KYC operations with highcompared to previous years, with a clear increase in the overall

potential responses dropped from 46% to 30%. However, its

level of impact reported. On the other hand, the responses forpotential use for client risk assessment, remained more or lessBasel impact on development were more muted, perhaps again

unchanged. This continued apparent lack of progress is a matterreflecting a rather narrower overall global influence of thesefor some discussion, and clearly indicates there is still work toregulations on the industry.

be done to actually operationalise the potential benefits.

Impact on Development:

Impact on Development:

Fintech: Potential toFintech: Potential to

AML/KYC Requirements

Basel Regulations

improve Small Client Risk

facilitate KYC?

Assessment
37%

22%

21%

29%

● Low

41%

33%

11%

30%

24%

● Medium● Low● High● Medium● High50%

Similarly, we again asked respondents to consider the impact of

56%

46%

capital constraints and access to liquidity. In 2017 we had seen

Summarya small but significant improvement in sentiment and last year

This year’s GIAR again provides an overview of the global

worries regarding capital and liquidity have continued generally

factoring industry which demonstrates considerable global

to reduce, although in the case of liquidity the perception has

similarities in the structure and delivery of the products but

been more polarised.

also gives insight as to how parameters such as awareness andacceptance, product application and prospects are certainly not

Impact on Development:

Impact on Development:

Capital Constraints

Lack of Liquidity

homogenous.
From the responses, we can gain a compelling and broad

22%

47%

31%

27%

35%

picture of the Industry. But it’s also the case that we still● Low

have to make sensible estimates and derive information as● Medium

the infrastructures in many countries are not yet sufficiently● Highdeveloped, robust or co-ordinated to fully address the38%questions.

Two issues considered in the survey again appear to have someIn putting together this review, we collect, consider and manage

significant implications for FCI and its members in respect of thea very large number of data items, and its collation is a very

current international trading environment. There was a marked

significant task. I’d like to thank all the country respondents for

improvement in the overall confidence in the capacity to provide

their hard work in gathering data for their countries.

20

FCI Annual Review 2019

FCI Expressed in Figures
By Harry Biletta, FCI Planning and Development Director
The number of members who did contribute was similar to the

Export factoring accounted for 15% of the total, 9% of theprevious year representing almost 70% in number and theirvolume relating two-factor business.

total volume added up to EUR 1,286 billion and hence all data
hereafter relates exclusively to these real figures.

The share of Direct export invoice discounting dropped to 4%
whilst Import factoring accounted for 2%, 58% representing two

Domestic factoring share of the total volume was 78%, 22%

factor business. Reverse accounted for the remaining 1%.

being recourse factoring, 47% without recourse, 17% invoice
discounting, 9% reverse and 6% collection only.

The following chart is the result of the actual contributions
received from the Members together with the estimates for2018.

Accumulative Turnover Figures for All FCI Members Compared to Worldwide Factoring Turnover

2011

2012

2013

2014

2015

in millions of Euros

2016

2017

2018

Variation									2017/2018
Invoice Discounting

279,113302,030

330,518

299,930

310,313

333,544

303,272

266,606-12%

Recourse Factoring

267,523

306,187339,644356,058

301,948236,613231,270

245,583

6%

Non-Recourse Factoring

331,257

352,353

344,863

372,115434,456

481,172478,640

482,885

1%

Collections

26,01827,786

31,39940,12357,72547,47240,86657,185

40%

Reverse							50,01089,482

79%

Total Domestic									Factoring FCI

903,912988,529

1,046,425

1,068,226

1,104,441

1,098,800

1,104,058

1,141,741

3%								Export Factoring

162,972

192,573

219,285

242,472

261,214256.551

292,408

211,195-28%

Import Factoring

30,94336,70750,48154,081

66,61263,44655,46031,719-43%

Export Invoice Discounting

51.06985,16387,44789,02596,871

108,038

106,104

59,569-44%

Reverse							
4,497

7,638

70%

Total International									Factoring FCI

244,983

314,442357,213385,579

424,697

428,035

458,469

310,120-32%									Grand Total FCI

1,148,895

1,302,971

1,403,638

1,453,804

1,529,138

1,526,836

1,562,527

1,451,861-7%									World Domestic Factoring
World International Factoring

1,750,899

1,779,785

1,827,680

1,857,410

1,838,366

1,868,855

2,078,758

2,244,2148%

264,108

352,446

402,798

490,114529,379

507,112519,540

522,8521%									World Total

2,015,007

2,132,231

2,230,477

2,347,524

2,367,745

2,375,967

2,598,298

2,767,067

6%

FCI Annual Review 201921

in millions of Euros

FCI Members Domestic Volume 2018

All Continents contribution to the FCI Members’● Invoice

800,000
700,000

Discounting

Domestic volume shows Europe at the top by

600,000● Recourse

far. Here the Non-Recourse volume has grown to500,000● Non-recourse

40%, Recourse to 23% whilst Invoice Discounting

400,000● Collection Onlyshows a small decrease to 22%.

300,000● Reverse

200,000
100,000
South
America

North
America

MiddleEast

EuropeAsiaPacific

Africa0in millions of Euros

FCI Members International Volume 2018

250,000● Export

When breaking down the FCI Members

200,000● Direct Export

International volumes by continent, Europe,

150,000

Invoicereaching 61% gained the leading position,

100,000

Discounting

replacing Asia Pacific (34%). The Americas

South
America

North
America

MiddleEast

Middle East together represented less than 1%.

Europetogether accounted for over 5% whilst Afrca and● Reverse
AsiaPacific● Import

0Africa50,000international

Share of 2018 FCI Factoring Volume

4%

The volume of the “Top Ten” FCI Members’● Japan4%

countries/Territories accounts for to 78% of the● Russia

4%

total, China leading the way with 17% followed

9%● Taiwan3%

by Italy (15%) France (11%), Spain (9%), UK with

● United Kingdom

6%● Rest22%6%, Germany 5%, US, Japan and Russia (4%) and● Germany5%● China● Italy17%● United States

15%● France

11%● SpainTaiwan (3%).

Share of 2018 FCI International Factoring Volume● Italy15%● The Netherlands

7%

When breaking down the volumes of FCI● Taiwan

10%● Belgium

5%

Members’ Countries/Territories International● Germany9%● France

4%

Factoring volume, we find the “Top Ten” adding● Singapore

9%● United Kingdom

3%

up to 78% and find Italy in first position with 15%,

● China8%● Rest22%

followed by Taiwan (10%), Germany and Singapore● Spain

8%(9%) China and Spain (8%), The Netherlands (7%)
Belgium (5%), France (4%) and UK (3%).

22

FCI Annual Review 2019

Factoring Turnover by Country in 2018
Country
Egypt
Mauritius
MoroccoSouth Africa
Tunisia
Africa Total
Australia
China
Hong Kong
India
Japan
Korea
Malaysia
Singapore
TaiwanThailand
Vietnam
Asia-Pacific Total

Domestic
428
224
2,424
18,532299
21,907in millions of Euros
International
89
3
108
50
17
267

Total
517
227
2,532
18,582316
22,174Companies
9
3
6
13
5
36

54,31911371,784
39,78913,50040,0004,000
532
42,135
7,213
16,413
9,232
4,387
72
25,30018,70013,38427,814
5,877 		
–1,100551,098
144,463

54,330411,573
53,5004,532
49,34825,645
4,459
44,00041,1985,877
1,100
695,562

6
31
17
10
3
166
25
18
19
6
15
166

Armenia
Austria
BelarusBelgium
Bulgaria
Croatia
CyprusCzech Republic
Denmark
Estonia
FinlandFranceGeorgia
Germany
GreeceHungary
IrelandItaly
LatviaLithuania
Luxembourg
Malta
Moldova
Netherlands
NorwayPolandPortugal
Romania
RussiaSerbiaSlovakia
Slovenia
Spain
SwedenSwitzerland
TurkeyUkraineUK
Europe Total		

55
17,357266
76,310
2,143
1,036
3,540
4,399
10,186
2,988
23,500223,75226
167,000
12,483
6,514
24,716
188,764
390
1,500
339
358
–
78,694
23,167
46,64524,295
4,078
43,543
585
1,601
930
146,963
19,227495
22,411
244
292,222
1,472,772

80
6,750
114
30
1,068
58
45
2,379
8,451
612
2,300
96,6572
77,300
2,152
397
1,578
58,666
394
2,160
–
196
4
19,674
2,756
9,829
7,462
929
297
65
920
470
19,428
595
98
4,483
1
27,971
356,370

135
24,107
380
76,340
3,211
1,094
3,585
6,778
18,6373,600
25,800320,40928
244,300
14,635
6,911
26,294247,430
784
3,660
339
554
4
98,36825,92356,47431,757
5,007
43,840
650
2,521
1,400
166,391
19,822593
26,894245
320,193
1,829,142

7
4
15
5
9
9
3
6
9
6
5
13
3
183
7
15
5
30
6
9
1
3
1
5
4
24
13
19
68
21
8
15
20
15
5
82
19
95
767

IsraelLebanon
UAE
Middle East Total		

2,413
554
4,000
6,967

252
121
1,500
1,873

2,665
675
5,500
8,840

10
3
6
19

CanadaUSA
North America Total		

1,801
72,10073,901479
15,721
16,2002,280
87,821
90,10178700
778

Argentina
BrazilChile
Colombia
Dominican Rep		
Guatemala		
Honduras		Mexico		
Peru		
Uruguay		South America Total		

3,052
12
47,20873
23,9002,600
7,142 		
272
30
174
108
51
16
23,938539
11,737286
95
15117,569
3,679

3,064
47,281
26,500
7,142
302
282
67
24,477
12,023
110
121,248

5
600
150
19
17
10
2
19
10
2
834

2,767,067

2,600Grand Total		

2,244,214

522,852

Total Factoring Volume

Africa 0.80%

Asia-Pacific 25.14%

Europe 66.10%

Middle East 0.32%

North America 3.26%

South America 4.38%

FCI Annual Review 201923

Total Factoring Volume by Country in the Last 7 Yearsin millions of Euros

Egypt
Mauritius
MoroccoSouth Africa
Tunisia
Total Africa

2012
220
128
1,844
21,378357
23,928

2013
450
145
2,755
19,400373
23,123

2014
435
206
4,200
15,898355
21,094

2015
537
235
2,708
14,672354
18,721

2016
550
256
2,708
16,291373
20,393

2017
418
208
3,374
17,117339
21,671

2018
517
227
2,532
18,582316
22,174

Var
24%
9%
-25%
9%
-7%
2%

Australia
China
Hong Kong
India
Japan
Korea
Malaysia
Singapore
TaiwanThailand
Vietnam
Total Asia Pacific49,606
343,759
29,344
3,650
97,210
8,000
1,782
8,670
70,0004,339
61
616,424

40,206378,128
32,2505,240
77,255
12,343
1,782
9,970
73,0003,348
100
634,441

42,290406,10230,8004,340
51,072
12,713
1,782
37,84056,6804,144
100
648,716

41,761
352,879
33,4253,700
54,184
13,094330
38,90052,6934,414
335
596,633

47,658
301,635
42,6763,881
49,46614,142
1,527
40,50047,1895,300
658
555,550

47,658405,537
46,945
4,269
37,284
13,094
1,650
44,00049,5485,600
700
657,189

54,330411,573
53,5004,532
49,34825,645
4,459
44,00041,1985,877
1,100
695,562

14%
1%
14%
6%
32%
96%
170%
0%
-17%
5%
57%
6%

Armenia06270Austria
10,96914,11016,400Belarus				Belgium
42,352
47,68455,374
Bulgaria
1,500
1,600
1,728
Croatia
2,269
3,146
2,498
Cyprus
3,350
2,823
2,671
Czech Republic
5,196
5,302
5,912
Denmark
8,800
8,932
10,463
Estonia
1,877
1,899
2,010
Finland17,00017,69920,554
France186,494
200,459
226,598
Georgia		05Germany
157,420
171,290
189,880
Greece12,761
12,09413,017
Hungary
2,676
2,661
2,827
Ireland19,956
21,20625,476
Italy
181,878
178,002
183,004
Latvia542
592
680
Lithuania
2,488
2,763
5,550
Luxembourg
299
407
339
Malta
240
178
296
Moldova			13
Netherlands
50,00052,00053,378
Norway18,115
16,296
17,182
Poland24,51031,58833,497
Portugal
22,94822,303
21,404
Romania
2,920
2,713
2,700
Russia35,176
41,96029,170
Serbia950
679
306
Slovakia
1,024
1,068
1,036
Slovenia
650
626
563
Spain
124,036
116,546
112,976
Sweden33,14930,54428,290
Switzerland
3,000
3,100
3,832
Turkey31,702
32,036
41,229
Ukraine
1,233
1,340
1,035
United Kingdom
291,200
308,096
350,622
Total Europe
1,298,680
1,353,742
1,462,510

75
18,264
320
61,169
1,820
2,885
2,414
5,064
12,606
2,010
23,095248,19314
209,001
12,8693,779
25,978
190,488
867
3,150
339
275
17
65,69818,47635,02022,921
3,651
23,332
445
1,036
329
115,220
26,0783,832
39,310442
376,571
1,556,977

100
19,621
330
62,846
1,947
2,825
2,925
4,848
13,2372,495
22,000268,160
14
216,878
12,782
3,635
23,952
208,642
867
3,100
339
275
17
82,84821,86739,396
24,517
4,037
28,004
555
1,646
1,000
130,656
20,481
3,832
35,085295
326,878
1,592,988

120
21,091
250
69,641
2,919
1,340
2,830
6,121
14,9482,495
24,000290,80325
232,431
13,151
5,730
26,294228,421
720
3,000
339
350
3
89,713
22,68244,30027,0084,560
33,792
603
1,646
1,200
146,292
20,094
3,832
34,575295
324,260
1,701,939

135
24,107
380
76,340
3,211
1,094
3,585
6,778
18,6373,600
25,800320,40928
244,300
14,635
6,911
26,294247,430
784
3,660
339
554
4
98,36825,92356,47431,757
5,007
43,840
650
2,521
1,400
166,391
19,822593
26,894295
320,193
1,829,142

13%
14%
52%
10%
10%
-18%
27%
11%
25%
44%
8%
10%
10%
5%
11%
21%
0%
8%
9%
22%
0%
58%
33%
10%
14%
27%
18%
10%
30%
8%
53%
17%
14%
-1%
-85%
-22%
0%
-1%
7%

IsraelLebanon
UAE
Total Middle East

1,422
301
2,900
4,698

1,060
352
3,500
5,000

3,000
416
5,020
8,498

2,108
508
5,350
8,028

3,080
610
3,831
7,583

3,295
662
4,000
8,019

2,665
675
5,500
8,840

-19%
2%
38%
10%

CanadaUSA
Total North America

7,100
77,54384,643

5,680
83,73989,4195,831
97,670103,501

5,530
95,000100,530

5,609
89,463
95,072

5,392
87,00092,3922,280
87,821
90,101

-58%
1%
-2%

Argentina
614
856
1,299
1,551
1,891
2,282
3,064
Brazil
43,62731,552
31,78228,96545,37950,43247,281
Chile
24,00025,50024,85022,30025,05022,756
26,500Colombia
4,562
7,076
8,985
10,333
7,630
7,655
7,142
Dominican Republic						
144
302Guatemala							
282Honduras				
22
27
27
67
Mexico26,13028,061
25,486
19,291
22,51023,31424,477
Peru
2,310
8,163
8,293
1,475
1,550
10,105
12,023
Uruguay
61
58
70
90
84
98
110
Total South America
101,519
101,412103,124
86,826104,396
117,088
121,248

34%
-6%
16%
-7%
110%
148%
5%
19%
12%
4%

Total World

6.50%

24

2,132,186

FCI Annual Review 2019

2,208,372

2,347,513

2,367,790

2,375,967

2,598,298

2,767,067

Photography
cover:– Global communications network over digitally manipulated
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Published in 2019 by FCIArticles may be used freely
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FCI Office
Keizersgracht 559
1017 DR Amsterdam
The Netherlands
Telephone +31 20 627 03 06
E-mail: fci@fci.nl
www.fci.nl
Published in 2019 by FCIArticles may be used freely
Please acknowledge source