Three banks seek Egypt regulatory approval to apply factoring activities

PHOTO

30 April 2017
By Mohamed Hamdy & Sayed Badr

Three banks are seeking the Egyptian market regulator’s approval to obtain licences designated to practice factoring activities.

One of the three bidders is Banque Misr, the country’s second largest public bank, a senior source in the Egyptian Financial Supervisory Authority (EFSA) told Amwal Al Ghad on Thursday.

Factoring is considered an important financing alternative for SMEs because it provides an integrated service that includes the purchase of the small or medium enterprise’s trade-related receivables, trade bill collection, and administration. These services allow SMEs to take advantage of strong growth opportunities and overcome capital and access-to-finance constraints.