Factoring

EFG Hermes Factoring launched in early 2018 under EFG Hermes Finance, making it the latest addition to the Firm’s expanding NBFI platform. By venturing into factoring services, EFG Hermes is not only able to further diversify its product offering while solidifying its market leadership, but is also able to cater to a growing demand for factoring services from both large corporations and SMEs across Egypt. Factoring services provide businesses with a means to access financing through assigning future receivables or payables to a third party or a ‘factor’ at a discount. Factoring receivables/payables, including checks, invoices, and contracts allows businesses to meet their immediate working capital financing needs and obtain liquidity to invest in future growth plans.
The Egyptian factoring industry is fairly young with just a handful of small players currently offering the service in the country. Given the lack of depth in the field, EFG Hermes’s liquid balance sheet, strong relationships with key financial institutions, and brand equity makes it ideally positioned to fully capitalize on the opportunity.

2018 Highlights

EFG Hermes Factoring received regulatory approval and the license to offer services in Egypt in March 2018, and with the Firm allocating an initial investment of EGP 250 million to operate the service, the service was fully operational by late 2018. EFG Hermes Factoring immediately secured a membership to Factoring Chain International (FCI), a global network of leading commercial finance companies, whose common aim is to facilitate international trade through commercial finance and related financial services. After just a couple of months from its official launch, EFG Hermes Factoring is already regarded as a leader in the field through its fast turnaround time, its value-generating advisory services, and its tailored factoring service offering that caters to the individual needs of clients who operate both in Egypt and abroad. The Firm is already offering factoring services to a vast range of clients across a multitude of industries ranging from manufacturing and import and export operations, to supply chain financing and discounting products.

2019 Outlook

Heading into 2019, EFG Hermes Factoring aims to build on its 2018 success to become the go-to factoring service provider in the country. As the Egyptian economy continues to expand, businesses of all sizes will be looking for ways to access liquidity quickly to take advantage of the positive macroeconomic environment. In the year to come, EFG Hermes Factoring will continue to generate value for customers, the Firm, and the wider Egyptian economy as it expands its geographic reach, adds new clients to its ever-growing roster, and further diversifies its factoring package offering.