Opening up Europe for Germany’s A.B.S. Global Factoring

Additional receivables financing from NIBC enabled German client A.B.S. Global Factoring AG (“A.B.S.”), based in Wiesbaden, to indirectly finance the acquisition of an Austrian peer. The takeover doubled the size of A.B.S. and opened the door to the broader European factoring market, where it now serves small and medium-sized companies in four countries.

Factoring is a quick way for smaller businesses to improve their cash flow by selling their invoices (accounts receivable) to a third party like A.B.S. The smaller business receives instant financing from A.B.S., which pays them a portion of the invoice. A.B.S. then collects the full amount owed on the invoice.

A.B.S. is one of Germany’s largest private factoring companies. NIBC has supported it with receivables-backed financing since 2012. We extended our original EUR 20 million facility by a further EUR 30 million. This enabled A.B.S. to refinance the receivables base of its Austrian acquisition, Salzburg-based VB Factoring Bank and its subsidiary Eurincasso GmbH, making it the largest independent factoring company in Austria. A.B.S. is also active in Switzerland and Sweden.

The transaction emphasises NIBC’s commitment as a long-term and reliable partner to entrepreneurial and innovative clients and cements the bank’s reputation in the German market as a respected provider of bespoke structured financing. It also highlights our professionalism and hands-on cooperation with other co-financiers and the program administrator in this transaction.