Deutsche Factoring Bank posts a 26 percent growth in revenue in the first quarter. 2009 was a successful year, despite the economic crisis
In 2010, the Deutsche Factoring Bank, Bremen expects a noticeable increase in the demand for factoring services. In the first quarter of this year, the Bank already posted a 26 percent increase in revenue compared to the same time last year, a period characterised by economic downturn. The Bank is also quite confident that this trend will continue, the reason being the increased difficulties many small and medium-sized enterprise are encountering when trying to obtain additional funding. Such enterprises can tap additional sources of liquidity through factoring, and furthermore safeguard their accounts receivable against non-payment.
Despite the global economic slowdown, the business year 2009 was, as a whole, a successful one for the Deutsche Factoring Bank. A combination of many new clients and a strong fourth quarter contributed to the Bank’s factoring revenue only declining slightly by 1.4 percent to 5.34 billion euros. The annual result, prior to the allocation of profits, was 11.2 million euros (compared to 14.3 million in the previous year).
The positive development on the domestic market (a recorded increase of 6.7 percent) offset a decline in the export and import business whose share of total revenue declined by five points to 29 percent. The average value of the purchased receivables was 1,207 euros in domestic factoring, whilst the values for export factoring and import factoring were 3,020 and 17,337 euros respectively. The Bank’s clients were drawn from more than 50 different branches of the economy.
Background
In the factoring business, companies sell trade receivables to the factor before they are due. The factor safeguards the liquidity of their clients by immediately crediting them after invoicing with the open accounts receivables. In return, the factor charges a customary bank interest rate together with a fee for the service rendered. The Deutsche Factoring Bank is one of the leading institutes of the branch, and is part of the Sparkassen-Finanzgruppe. Apart from its headquarters in Bremen, the Bank is also represented with offices in Bielefeld, Dusseldorf, Frankfurt/Main and Munich. Furthermore, an additional office will soon be opened in Stuttgart.
For more information, please contact:
Dr. Karl-Joachim Lubitz
Telephone: +49 421 3293-190 | E-Mail: karl-joachim.lubitz@deutsche-factoring.de
Langenstraße 15-21, 28195 Bremen | www.deutsche-factoring.de
