Cash & Liquidity Management
Published  7 MIN READ

The X Factor

How Tech and ESG are Enhancing the Treasury Benefits of Factoring

Factoring may be as ‘old as the hills’, but it continues to be an important and well-loved financing instrument for working capital management. BNP Paribas’ Lionel Joubaud discusses how technology and ESG components are helping to ensure the solution evolves for the modern age, making factoring more relevant than ever for corporates as their finances come under pressure amid a “perfect macroeconomic storm”.

Eleanor Hill, Editor, TMI (EH): Factoring is a long-established working capital solution. Considering corporates have so many sophisticated funding options available to them today, how relevant is factoring? Does it still have a unique appeal?

Lionel Joubaud, Global Head of Factoring, BNP Paribas, (LJ): If anything, factoring is now more relevant than ever, most especially for financing, protecting, and optimising the working capital needs of corporate clients.

To make this more concrete, let me share some statistics. Last year, BNP Paribas financed €200bn worth of turnover via factoring. And that was 25% higher than the previous year. This trend is certainly on the up!