Classical/Domestic factoring

A factoring contract concluded between the factor and the Seller pursuant to which:

a) The Seller assigns to the factor receivables arising from contracts of sale of goods or rendering of services made between the Seller as a supplier and its customers (debtors/buyers).

b) The Factor advances or discounts a company’s invoices to the Seller at an accelerated rate in exchange for a discount.

c) The factor is to perform at least two of the following functions: finance based on receivables, maintenance of accounts relating to the receivables, collection of receivables and protection against default in payment by debtors.

d) Classical factoring types are either with recourse (on the Seller) or without recourse.

Notification to debtor is mandatory in case of domestic-classical-without recourse factoring


Reverse factoring

A factoring contract between the factor and the buyer (factor’s client), in which the factor agrees to purchase and pre-finance current receivables of predefined sellers against the buyer. Advance payment provided by the factoring company to a seller (supplier of Factor’s client) based on invoices confirmed (qualified).


Benefits of Factoring


Egyptian Laws

Factoring Types

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