GE Capital has signed an agreement with Royal Bank of Scotland (RBS) to acquire 100% of RBS’ factoring and invoice financing business in Germany RBS Factoring.
RBS’s factoring and invoice financing business is a provider of accounts receivable (AR) finance. The business processes more than one million invoices a year and will add over EUR2bn of volume to GE Capital’s German factoring platform. The business had assets of EUR169m as of December 2009.
Rich Laxer, president and CEO of GE Capital EMEA, said: “The acquisition of RBS’s German factoring business perfectly fits our strategic focus on SME’s. Building on the near record volumes we financed in 2009, this acquisition will reinforce our position as a leading provider of accounts receivable financing in Germany.”
Joachim Secker, CEO of GE Capital in Germany, said: “We provided more than EUR20bn of working capital to German Mittselstand businesses in 2009 through our factoring platform and are committed to increasing our financial support of mid market businesses in these difficult economic times. We are very pleased to be able to extend our unparalleled service to the existing customers of RBS Factoring in the future.”
GE Capita is a provider of AR finance in Europe, lending more than EUR250m to small and medium sized European businesses every day and financing more than 350,000 companies every year in Europe alone. Since 2004, GE Capital has provided more than EUR350bn of working capital to small and medium sized businesses across Europe.