DÉCIDEURS. Factoring has grown significantly in recent years. What makes it such an essential financing lever for companies today?
Gaëtan du Halgouët: Factoring enables B2B companies to unlock liquidity quickly by converting trade receivables into immediately available cash, which can then be used to support day-to-day operations, finance investments, or repay debt. In both stable and stressed economic environments, it has become a highly strategic financing tool.
Romain Chaufour: Concretely, a B2B company generating €50 million in annual revenue typically has around €8 million tied up in payment terms. Through factoring, up to 90% of this amount can be released, giving the business additional flexibility to support its operations.
Factoring is often presented as a growth financing tool. Is it still relevant for companies facing financial distress or restructuring situations?
R.C.: One of factoring’s key advantages is that it is primarily based on the quality of the receivables rather than the company’s overall financial condition. Even businesses under pressure can therefore access significant financing, provided their customers remain creditworthy.
G.H.: It has become a core pillar for finance departments. During a crisis, factoring provides rapid access to the liquidity businesses urgently need; once conditions improve, it supports growth at a highly competitive cost.
R.C.: Unlike many other financing solutions, a factoring programme can be structured within a matter of weeks — sometimes even faster. Once implemented, receivables can typically be funded within 48 hours. That responsiveness makes it particularly suited to restructuring and turnaround situations, where immediate liquidity is critical to maintaining operations.
What are the strengths of factoring in an uncertain economic environment?
G.H.: Stability and flexibility. Unlike certain credit facilities that may be reduced or withdrawn following financial deterioration, factoring facilities generally remain in place. It is therefore a resilient solution for companies operating in volatile markets, especially those facing structurally long payment terms. It also provides significantly larger liquidity capacity than overdrafts or Dailly financing.
Are banks receptive to factoring in restructuring contexts?
G.H.: Whenever a company faces difficulties, banks systematically assess whether a factoring programme is already in place or could be implemented. It is reassuring for lenders because it secures recurring cash inflows. The presence of a factor within a restructuring framework often facilitates negotiations with banking partners.
R.C.: The factor effectively acts as a trusted intermediary. In restructuring situations, banks frequently require debt rescheduling or additional guarantees. Factoring helps generate the liquidity needed to meet these requirements while ensuring business continuity.
What trends have you observed in the factoring and restructuring market in 2024?
G.H.: We observed a certain duality among factoring providers. On one hand, they remain eager to expand their market presence and develop new offerings. On the other, they are facing major challenges that are reducing their appetite for risk.
R.C.: Weak economic growth has impacted the turnover of companies financed by factors, slowing market momentum. Some businesses entered insolvency or liquidation proceedings, while others crossed into fraudulent behaviour – the risk factors fear most. As a result, risk departments and credit committees have become increasingly cautious, making access to factoring more selective. Another noticeable trend has been the rise in businesses being acquired through court-led restructuring processes. We support buyers in financing their return to growth. The key question for 2025 is whether there will be enough investors willing to absorb the growing number of distressed companies.
Tell us about the new players entering the market. What impact could they have?
G.H.: On certain transactions, we have introduced new players from the Private Equity world operating through debt funds. These non-bank structures target very large financing volumes, often several hundred million euros. For now, these initiatives remain focused on specific market segments and do not yet address SMEs or mid-sized companies. Interestingly, most of these new entrants are non-French, highlighting the lack of equivalent domestic solutions.
R.C.: Nevertheless, they are bringing fresh momentum to the market by targeting large businesses with strong turnaround potential. Their ability to deploy substantial capital gives them a degree of flexibility that traditional banks do not always have.
What are your expectations for 2025?
G.H.: Falling interest rates are excellent news. Three-month Euribor – the benchmark reference rate for factoring – has declined by more than 1%. Since factoring was already competitively priced, this further strengthens its attractiveness as a financing solution.
“Our educational role is essential when dealing with highly bank-driven factors that may adopt an overly conservative view of risk.”
How does Fibus support clients through restructuring situations?
G.H.: In 2024, we managed several carve-out transactions involving non-core or underperforming activities sold by major French groups to investors. As an independent advisor, we are able to compare market solutions objectively and recommend the most suitable option.
R.C.: In formal restructuring procedures, some factors may hesitate to intervene while others remain willing to support the company. For a €140 million automotive supplier, we identified a new factor that was more comfortable with the group’s financial profile and capable of operating across multiple countries.
G.H.: Our role is also to act as a protective buffer to avoid worsening situations unnecessarily. In times of crisis, factors may notify factoring agreements to strengthen their legal position, which can disrupt receivables management and negatively impact DSO. Our objective is to preserve the original structure of programmes whenever possible.
R.C.: That educational work is critical, particularly with highly bank-oriented factors that can sometimes take an excessively conservative approach to risk. It allows us to deliver genuine strategic value beyond pure financing structuring by becoming a resilience partner for our clients.
G.H.: Our distinctive strength lies in combining digital capabilities with advisory expertise. We developed ARI Trade, a software platform designed to activate financing in record time. Once implemented, ARI continuously identifies additional funding opportunities that can be unlocked with a single click. For companies operating under pressure, that is a major advantage.