Factoring provides more
security and stability
Factoring is a fundamental component of the financing mix. A.B.S. Global Factoring AG and HCOB have been working together successfully for many years. Eva Sartorius, member of the management board of A.B.S. Global Factoring AG, talks about the prospects and challenges of the factoring market and the cooperation with HCOB.
7 August 2025 | Reading time 7 minutes
Ms Sartorius, how do you assess the current market development of factoring in Germany?
Eva Sartorius: The factoring market in Germany has been developing positively for years. However, at 9.3%, the so-called factoring ratio (factoring turnover in relation to GDP) is still low compared to other European countries. In the Netherlands, Belgium, Portugal and Spain, the ratios range between 16.3% and 23.2%. So there is still room for improvement in Germany.
What specific challenges do you currently see for your customers?
Eva Sartorius: The biggest challenge is uncertainty. A volatile market environment, geopolitical tensions and customs and trade conflicts have recently forced companies to adapt to constantly changing conditions. When it comes to financing a company, it is therefore essential to diversify. A financing mix of bank loans and alternative forms of financing such as leasing and factoring provides stability and flexibility.
How exactly does factoring work – and what is the strategic advantage?
Eva Sartorius: Factoring is a turnover-based financing method, i.e. as soon as turnover is generated and an invoice is issued, it is purchased and financed directly by the factor. This gives the company predictable liquidity regardless of the payment terms and behaviour of its customers.
What makes factoring so flexible?
Eva Sartorius: Factoring is a financing solution that can be tailored to the individual needs of a company. With selective factoring, for example, only selected customers can be included in the factoring arrangement, meaning that not all receivables have to be sold. This offers companies maximum flexibility.
Another advantage is that the financing line grows as turnover increases. This makes factoring particularly suitable for fast-growing companies that want to dynamically adjust their financing requirements. This also applies to start-ups or companies in crisis.
Factoring enables a company to improve its cash conversion cycle in the long term.
What other advantages are there?
In addition to financing and rapid access to liquidity, factoring offers further advantages, such as protection against default risk and, in full-service factoring, even the takeover of debtor management and dunning. This is a real added value to bank financing, especially for small and medium-sized enterprises (SMEs).
Are there any industries where factoring is particularly in demand?
Traditional industries include wholesale, but also manufacturing companies and service providers. It can be said that factoring is a sensible form of financing in all B2B industries where payment terms of 30 days or more are standard.
How does Hamburg Commercial Bank support you in this?
We have been working closely with HCOB for many years. As a bank-independent, owner-managed provider, refinancing is an important strategic pillar of our business model. At A.B.S., we rely on long-standing, reliable partnerships. We particularly appreciate it when banks understand our business model and support us as partners.
What role does factoring play in the context of professional working capital management?
Factoring enables a company to improve its cash conversion cycle in the long term, i.e. by permanently selling its receivables, liquidity is available immediately and not only after payment by the customer. The liquidity can be used to pay suppliers. At the same time, the balance sheet total decreases because receivables are no longer reported – which can have a positive effect on the equity ratio. In the best case, this can lead to an improvement in the company’s credit rating, which in turn can have implications for its willingness to grant loans and its pricing.
How do you see the prospects for factoring?
Definitely positive. Compared to the past, factoring is increasingly being seen as a modern, flexible financing instrument. Awareness is growing. I can only recommend that every company examine the possibility of factoring and broaden its financing mix when restructuring its financing.