Factoring is booming in Italy, which not only recovers but exceeds pre-Covid levels: 17,06 billion euros in January 2022, against 15,03 billion in January 2021 (+13,50%) and 16,084 in January 2020, prior to the pandemic. These are the main results of the survey by Assifact, the Italian Association for Factoring which brings together companies in the sector, in collaboration with KPMG.
Factoring is a widely consolidated tool within the economic and financial systems. In recent years, the factoring market - which is worth 14% of GDP - has grown regularly and significantly, "highlighting the resilience and reactivity of a market that is supporting the country's recovery and has also recorded the effects of digital acceleration, with a growing use of fintech solutions”, underlines the Association.
Despite the importance assumed by this instrument in the world and in Italy, studies on the characteristics of the factoring demand are still few. The studies conducted so far highlight the characteristics of companies that use factoring, but leave little room for the analysis of perceptions, methods of use and the effects of factoring from the point of view of companies.
Question of factoring, the Assifact survey
In this regard, the Italian Factoring Association has conducted an important survey on the characteristics of the factoring demand, focusing on the perception and appreciation of the product characteristics, on the nature of the relationships with banks and specialized financial intermediaries that carry out factoring, on the implications of its use for company management, organization and finance.
The questionnaire, prepared on a special online platform, is aimed at companies of all sizes and aims to acquire the point of view of demand on factoring and other forms of support for working capital, also from the perspective of fintech and innovation.
All interested companies will be able to fill in the questionnaire freely. All participants will receive a copy of the final research report and will also be invited to present the survey. The data collection will remain open for about two months and the results of the survey will be presented in June, on the occasion of the Assifact Assembly.
Areas of investigation on the factoring demand
A first area of interest of the investigation concerns the performance of trade receivables and payables and working capital requirements. The aspects highlighted here are: timing and delays in payment of trade payables and collection of trade receivables, opinions and critical issues on trade receivables, needs related to working capital and possible use of technological platforms.
A second area concerns the use of factoring and other forms of working capital support. These include the methods of use in its multifaceted services in comparison with other tools to support working capital. Technological innovation, digitization and degree of satisfaction with the factoring service obtained.
Subsequently, the investigation examines the financial aspects of the use of factoring: effects on trade credit management and performance, impact of factoring from a financial point of view, methods of using advances.
A fourth area concerns the pandemic and current and prospective critical issues: recourse to moratoriums and state-guaranteed loans, evolution during the pandemic of recourse to short-term debt and financial solutions to support working capital and related reasons, main critical and risk factors in perspective, relevance of the ESG issue in relations with lenders.
Then a focus on the point of view of assigned debts, also in the role of promoters of "Supply Chain Finance" programs: opinions regarding the assignment of credit by suppliers and the relationship with the factor, opinions regarding Supply Chain Finance solutions and related products used, main needs connected to use of Supply Chain Finance platforms and relative degree of satisfaction.
Finally, the survey examines i relations with the public administration. In particular, the point of view of the suppliers of the Public Administration: assignment of credit, critical issues encountered and improvements.
