Increased competition driving down prices for receivables despite decline in transfer activity
6 April 2021
While clubs have struggled to offload players, the increased need for cash as a result of the pandemic keeps the market for factoring deals moving.
The almost risk-free business coupled with low deposit rates have attracted financial institutions who need to get their money working.
Shawbrook Bank is looking to amp up its activity in the area and move from purely transfer receivables to central distribution funds, says director.
Despite spending in the two most recent transfer windows declining by almost 50 per cent in total, the market for receivable financing has proven resilient. It has even proven to be attractive.
Over the past year, a number of financiers have increased their exposure to or entered the market viewed as almost risk free due to the preferential treatment given to football creditors. That, along with low deposit rates, makes it an appealing way to get your money working for you.
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