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GE Captial and Credit Agricole

GE Capital has recently acquired a subsidiary of  Credit Agricole leasing and factoring. The reason for this engagement is to improve the commercial and lending power of GE Capital. This move will enable GE Capital to create lending solutions to the SME community.

Credit Agricole, previously known as Euro Factor, is one of the leading AR companies in the UK and has lent companies around £3million. GE Capital lends around £4million a year, so as a combination, this relationship will be able to lend even more money to those SME businesses.

It makes sense for such companies to collaborate or be acquired by one another, due to nature of Factoring, companies needing to lend money tend to run into the thousands and hundreds of thousands, not just a few hundred pounds here and there.

This acquisition will become a super power in the UK market, GE Capital is one of the biggest consumer lenders in the UK and spreads into the European market, providing solutions not just to businesses but to consumers also.

The recent recession and economy crisis put a block on lending, for civilians and businesses, but now factoring, selective factoring and invoice discounting allows companies to borrow large amounts of money, but only up to the amount they are due to receive from clients through invoices. This stops over lending, and companies getting into debt problems, by keeping a cap on the amount they can lend.

So, as SME businesses breathe a sigh of relief, factoring seems to be a growing trend, getting around those tricky lending issues, by only providing the amount of money actually owed to the companies through their own invoices.

I’m sure there is a real buzz around GE Capital, being one of the biggest lenders and increasing their power due to acquiring part of Credit Agricole.


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