2. Opportunities and Challenges for Factoring in Emerging Markets Jeroen Kohnstamm

4. 167 MEMBERS 54 COUNTRIES EUR 338 BILLION  A/C: 13 members – 7 countries

5. ExporterImporter Export Factor Import Factor Credit risk protection 2 Financing 3 Ledger administration 4 Collection service 1

6. Network Extension

7. MOST SUCCESSFUL “DEVELOPING” MARKETS TaiwanEUR 8.6billion MexicoEUR 6.3billion ChileEUR 3.2billion Hong KongEUR 3.1billion ChinaEUR 2.3billion TurkeyEUR 4.5billion

8. MOST SUCCESSFUL EU ACCESSION COUNTRIES PolandEUR 2.5billion Czech Rep.EUR 1.7billion EstoniaEUR 1.5billion HungaryEUR.6billion LithuaniaEUR.5billion

9. DOMESTIC VERSUS INTERNATIONAL FACTORING  Domestic has older history  International requires global solutions  Nature of a market

10. Exporter Export Factor USA Import Factor FRANCE Import Factor JAPAN Import Factor

11. BUILDING FACTORING MARKETS – IDENTIFYING THE ELEMENTS FOR FAILURE OR SUCCESS  Banks versus Factors  Legal Framework  Industrial climate (domestic vs international)  F/X Regulations

12. RECOMMENDATIONS  SME’s are target clients  Start with domestic recourse and export non-recourse factoring  Learn from correspondent factors abroad  Establish national factoring association

13. THANK YOU FOR YOUR ATTENTION