Al Mal Newspaper
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Packaging Industry Acquires 19% of Egypt Factors Portfolio in 2009
Wrote: Nashwa Abdel Wahab
The Packaging Sector topped the sectors list for the year 2009, acquiring 19 % of the total volume of Egypt Factors’ portfolio and holding the top position among all sectors that use factoring. Meanwhile, the furnishings sector jumped to be a runner-up on the list, acquiring 16% of the total volume of the portfolio. The building requirements sector also progressed to third rank on the list by the end of the past year, acquiring 14% of the total volume of the portfolio, and followed by both the textile and ready made garments sector and the foodstuff sector, each acquires 12% of portfolio.
In this respect, the General Manager of Egypt Factors, Mr. Ahmed Shahin, indicated that the remarkable change in the percentage of the sectors that use factoring is due to the increasing demand for factoring services by certain sectors in the last quarter of the past year, and that such demand led to a factoring business growth of up to 140% in the last quarter, which in turn increased the company’s activities to be US$ 60 million at the end of the year, as compared to the first nine months where factoring volume was only amounting to US$ 25 million. He added that the company further rendered services to more than one hundred industrial, commercial and service enterprises, and 80% of them are small and medium enterprises.
He further stated that the company, in the current year, plans to expand the factoring services rendered to small and medium enterprises by doubling the volume of transactions which reached US$ 60 million in 2009. He expected that local factoring and purchases factoring would witness a remarkable demand in the current year, given the various and flexible means for payment, the immediate settlement of suppliers’ invoices and properly meeting the requirements of small and medium enterprises for purchase from both local and foreign suppliers.
The General Manager of Egypt Factors also added that the company plans to widen the client-base and vary the client-reach channels using the branch networks of banks; on top of which the CIB which is a main shareholder acquiring 40% of the company’s capital. He indicated that negotiations with a number of banks were held with the objective of signing partnership agreements to render factoring services to the bank’s customers.
Mr. Shahin stated that the petrochemicals sector jumped to rank (6) on the list, reaching 9%, and followed by the industrial requirements sector which reaches 6%, then the petrochemicals which reaches 5% thus 1% more than the furniture sector which is 4%. The list was then ended by the other industries such as the car-feed which reaches 3%.
It is worthy to note that Egypt Factors renders an integrated group of factoring services that support clients’ commercial activities on both local and international markets. Such services include a number of finance solutions, including the advance payment of 90% of the debit accounts and purchased commercial papers, the management services, the invoices collection- on due dates- from purchasers located inside and outside Egypt, and the protection from bad debts whereby the company guarantees payments of the covered value of debts on behalf of each purchaser and settles the invoices in a short time after due date thereof, which all help clients to grow and expand the scope of their sales.