Economic and ecological sustainability are at the core of business financing that is also viable in the future. The German factoring association (Deutscher Factoring-Verband e.V.) and its members are therefore closely monitoring and engaged with the issue of sustainability and its various effects on and consequences for factoring.
In addition to directly reducing damages to the environment and the climate which result from certain aspects of the association’s work (e.g. avoiding voyages and favouring virtual/online meetings), our association focusses particularly on the exchange and dissemination of knowledge, information and experience in the field of sustainability with and amongst its members. Thereby, our association aims at widening and supporting the cognizance and integration of sustainability-connected ESG-factors and related current legislative developments by factoring providers and the factoring industry. In this context, the German factoring association advocates and supports a proportional configuration and implementation of sustainability-related compliance requirements.
In the area of SME-financing, adherence to the proportionality principle is particularly important when establishing suitable provisions for sustainability. Such provisions should be aligned with the resources and know-how of the factoring providers and also take into consideration to which extent they can influence the business activities of those involved in factoring relationships.
Sustainability strategies require a balanced coordination of economic interests and ecological as well as social sustainability. By creating a permanent connection between economic viability and ecological-social sustainability, factoring can remain a future-proof and innovative form of financing, particularly for SMEs.
