factoring in egypt
DESCRIPTION
Factoring in Egypt. Benefits to Egyptian businesses Cairo 13-Jan-2010. AGENDA. What is factoring? Factoring statistics for Egypt Factoring packages available in Egypt Factoring versus other products Conclusion. AGENDA. What is factoring? Factoring statistics for Egypt - PowerPoint PPT PresentationTRANSCRIPT
Factoring in Egypt
Benefits to Egyptian businesses
Cairo13-Jan-2010
AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
WHAT IS FACTORING?
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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Package of
financial services
whereby you
assign* invoices to
the FACTOR for the
benefit of…* assignment notification might be required
Financing
DebtCollection
Risk Protection
WHEN MAY FACTORING APPLY?
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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Commercial invoice
Sales on credit [contractual relationship; up to 180 days credit terms]
Continuous relationship
Clear/Clean performance [no sale or return (consignment) no counter sales, no performance claims]
Clear sales title & enforceable receivables [no legal constraints, clear ownership of the goods]
Spread of buyers [“not all eggs in one basket”]
AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
FACTORING STATISTICS
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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REQUIREMENTS FOR FQACTORNG COMPANIES
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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Minimum capital of EGP 10Mio
Factoring should be the sole activity or should maintain separate books for the factoring activity
One of the shareholders should be a financial institution
Managing Director or Executive Officer should hold an university degree with an experience of more than 10 years in the financial or banking fields
AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
WHERE FACTORING HELPS YOU?
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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CLIENTBuyer / Seller
DomesticPurchase
ForeignPurchase
DomesticSales
ForeignSales
Purchase Factoring
Receivables Factoring
FACTOR
Complete Trade Finance Solutions
EXPORT FACTORING
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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DOMESTIC FACTORING
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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PURCHASE FACTORING
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
FACTORING vs. OTHER PRODUCTS
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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FACTORING
Post shipment
Performance & DebtorPayment Risk
Cash flow/Portfolio/Buyer driven
Value proposition for all clients (including SME’s)
Liquidity linked to growth
Value added - risk management
Without/Limited (performance) recourse
BANK FINANCE
Pre & Post shipment
Financial Risk
Security/Collateral driven
Price effective for good Balance Sheet
Liquidity linked to Security
Mainly financing
Always with recourse
FACTORING vs. OTHER PRODUCTS
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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FACTORING [FCI]
Assignment required
Risk cover up to 100%
No down payment; charges linked to the actual turnover
No maximum annual claims
Claim payment by maximum 120 days from due date
Financing available upon assignment
Commercial collection included
CREDIT INSURANCE
No assignment required
Risk cover up to 90%
Advance premiums; charges linked to forecasted turnover
Maximum annual claims
Claim payment by maximum 180 days from due date
No financing available
No commercial collection available
AGENDA
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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1. What is factoring?
2. Factoring statistics for Egypt
3. Factoring packages available in Egypt
4. Factoring versus other products
5. Conclusion
CONCLUSION
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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CONCLUSION
We cannot changeWe cannot change
the direction of the windthe direction of the wind,,
however we can adjusthowever we can adjust
our sailsour sails!!
YOUR PARTNERS IN EGYPT
Export Credit Guarantee Co.
of Egypt (ECGE) Web:
www.ecgegypt.net E-mail:
[email protected] Phone:
02 226 367 40 Main shareholder:
Export Development Bank of Egypt; National Investment Bank
EGYPT FACTORSS.A.E.
Web:www.egyptfactors.com
E-mail:[email protected]
Phone:02 267 209 84
Main shareholders:C I B; I F C (World Bank Group); FIMBank plc
International Factoring Promotion Conference, Cairo, 13-Jan-2010
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THANK YOU!