Experience
Factoring
CLC Offers Factoring as an additional Financial Service
We are officially licensed from Financial Regularity Authority (FRA), as we aim to become Egypt’s leading financial institution in tailoring financial solutions to ensure sustainable growth.
- Factoring is one of the non-banking financial instrument that provide working capital and accelerate its cycle.
- This activity serves to allocating short-term financial rights arising from exportation.
- This sector includes local factoring and international factoring which is divided into: export factoring and import factoring.
- Factoring activity in Egypt is governed by a series of decisions issued by FRA’s Directors of the Authority based on what is stated in the Executive Regulations of the Investment Guarantees and Incentives Law No. 8 of 1997.
The following are the functions performed by a factor:
Maintenance of Sales Ledger
A factor is responsible for maintaining the sales ledger of the client. So, all the sales transactions of the client are taken care of by the factor.
Financing
The factor finances the client by purchasing all the account receivables and/or account payable.
Credit Protection
In case of non-recourse, the risk of non-payment or bad debts is on the factor.
Collection of Money
The factor performs the duty of collecting funds from the client’s debtors. This enables the client to focus on core areas of business instead of putting energies in the collection of money.