Resimac signs distribution deal with Coface

Wholesale lender Resimac will distribute Coface Finance Australia's receivables finance services. Resimac will distribute Coface's invoice discounting and factoring products through a subsidiary service provider, Capel Court Financial Services.

Coface is a subsidiary of the European bank Natixis and has been in Australia for two years.

The receivables finance market has grown strongly in Australia over the past decade but contracted last year. Turnover of $63 billion in 2009 was down three per cent on the 2008 figure, according to the Institute of Factors and Discounters.

Last year's fall can be put down to ANZ's move out of the receivables finance market.

Industry participants say receivables finance activity has picked up as small and medium companies, finding it hard to get bank loans, look for alternative sources of finance.

Coface Finance Australia general manager, Norman Beetge, said Australia is already one of the group's top 10 markets (it operates in 67) after two years - a reflection of the strength of the receivables finance market here.

Beetge said the deal with Resimac might also include a white label deal down the track.

Resimac has had a busy start to the year. In February it launched a retail mortgage brand, Hemisphere. The group's chief operating officer, Allan Savins, said receivables finance was a new area for Resimac's distribution network.

Savins said: "The non-bank sector needs to increase its presence and show that there are options out there beside the big banks. It is time for Resimac to step up."