Observations from the Factor Chain International Annual Meeting in Beijing
Recently I attended the Factor Chain International Annual Meeting in Beijing, where the overall sentiment was upbeat. Based on data provided by FCI, it appears that both domestic and cross-border factoring is growing – a great sign for the industry.
A few key observations from the event:
- First, importers are continuing to request longer, extended terms from their suppliers. Once they were willing to pay their supplier as soon as the goods were shipped, today many are deferring payment until the goods reach the U.S. While this is putting significant pressure on many suppliers, they appear to making this concession. This will be an interesting trend to watch over the remainder of the year.
- Additionally, while all eyes continue to stay peeled to Europe, there is a tremendous opportunity for European factors that are willing to take on more risk and provide the credit that SMEs