8/8/2019 Factoring is a Complete Financial Package That Combines Working Capital Financing

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Factoring is a complete financial package that combines working capital financing, credit risk protection, accountsreceivable bookkeeping and collection services. 

It is offered under an agreement between the factor and a seller. Under the agreement, the factor purchases the seller's accountsreceivable, normally without recourse, and assumes the responsibility for the debtor's financial ability to pay. If the debtor goesbankrupt or is unable to pay its debts for credit reasons, the factor will pay the seller. When the seller and the buyer are located indifferent countries the service is called "international factoring".

Domestic factoring activities started in the U.S.A. in the early part of the 20th century. International factoring activities started in the1960's with European countries as the early pioneers and with FCI as the principal organisation to spread the use of internationalfactoring all around the world.

About FCI

Factors Chain International, commonly known as FCI, is the world's most important factoring "network". With a central office

("Secretariat") in Amsterdam and with close cooperation with its member companies from different continents, FCI has a truly global

reach

Established in 1968 as the umbrella organisation for independent factoring companies around the world, FCI has grown into theworld's largest factoring network.

When FCI was founded, domestic factoring services were available only in North America and a few European countries. Theconcept of international or cross border factoring was still new and restricted in scope by its lack of geographic coverage. The

founding members of FCI saw the potential for international factoring, but realised that their umbrella organisation was needed for two reasons:

1 To introduce the concept of factoring in countries where the service was not yet available.2 To develop a framework for international factoring that would alow factors in the country of 

 both the exporter and the importer to work closely together.

The FCI concept is built around local expertise and flexibility of approach. Each country operates in its own way, being sensitive tolocal customs and culture adding a unique dimension to cross border factoring. The important thing however is that each member operates a standard communication system and agrees to work within a global code of conduct.

Since it's inception the membership of FCI has grown dramatically to 252 members in 66 countries. Each new member that joins willhave met strict criteria in terms of financial strength and commitment to high standards of service.

FCI is a global network of presently 252 leading factoring companies, whose

common aim is to facilitate international trade through factoring and related

financial services.

Most FCI members are with owned by, or associated with, well-known banking

institutions, industrial conglomerates or insurance companies.

Our members are located in 66 countries, on any of the five listed continents.

Factors Chain International - The Americas

Click on the country of interest to view country profile information and a listing of local FCI members.

Argentina 3

Bolivia 1

Colombia 2

Honduras 1

Mexico 1

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Brazil 1

Canada 2

Chile 4

Peru 3

U.S.A. 10

Factors Chain International - Europe

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Austria 2

Belgium 3

Bosnia & Herzegovina 1

Bulgaria 4

Croatia 3

Cyprus 2

Czech Republic 4

Denmark 2

Estonia 1

Finland 1

France 6

Germany 6

Greece 9

Hungary 2

Italy 10

Latvia 1

Luxembourg 1

Malta 2

Netherlands 3

Norway 3

Poland 4

Portugal 5

Romania 6

Russia 5

Serbia 2

Slovakia 1

Slovenia 3

Spain 10

Sweden 1

Turkey 20

Ukraine 2

United Kingdom 6

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Lithuania 1

Factors Chain International - Africa

Click on the country of interest to view country profile information and a listing of local FCI members.

Egypt 2

Mauritius 1

Morocco 2

South Africa 1

Tunisia 1

Factors Chain International - Middle East

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Israel 2

Jordan 1

Lebanon 1

Qatar  1

United Arab Emirates 4

Factors Chain International - Asia / Pacific

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Armenia 1

Australia 3

China 19

Korea S. 1

Malaysia 2

Singapore 5

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Hong Kong 13

India 5

Japan 3

Taiwan 18

Thailand 2

Vietnam 3

India back 

Country profile

Number of Factoring companies: 10

Domestic Factoring Turnover (in Millions of EUR): 2,500

International Factoring Turnover (in Millions of EUR): 150

Total Factoring Turnover (in Millions of EUR): 2,650