Egypt’s Financial Regulatory Authority (FRA) has launched a digital factoring system on its electronic portal in partnership with e-finance to prevent double financing risks and streamline oversight of the sector, the regulator said on Sunday.

The first phase of the system allows factoring companies to conduct electronic inquiries into invoices to verify whether they have been previously funded. This is achieved through a direct link with the Ministry of Finance and the Egyptian Tax Authority, intended to ensure data accuracy and protect the market from irregular practices.

FRA Chairperson Mohamed Farid said the launch is a step toward building an integrated infrastructure for the digital transformation of non-banking financial services. He noted that the system employs financial technology to enhance transparency and governance while improving the speed of service delivery.

The digitisation comes amid rapid growth in the sector. The value of factored papers rose by 77.8% in 2025 to reach EGP 132.2bn, compared to EGP 74.5bn in 2024, according to FRA data.

Under the new mechanism, factoring firms can reserve invoices in their favour until the funding is disbursed to the seller. Companies are then required to upload proof of payment to maintain a precise digital record of each transaction. Factoring is a short-term financing tool where businesses sell their future receivables to a third party, known as the factor, to obtain immediate liquidity.

Farid added that a second phase of the project will transition the entire factoring cycle into a fully electronic process, covering everything from initial invoice verification to final payment. He stated that this expansion is expected to reduce operational costs, shorten procedural timelines, and accelerate corporate access to necessary liquidity. 

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