Al Borsa Newspaper
Domestic factoring takes over 40% of Egypt Factors’ portfolio
By OMAR ABD El-HAMID
Domestic factoring took over 40% of Egypt Factors portfolio during last year. The company aims at doubling the value of its business this year, either in terms of domestic or international factoring. The volume of the factoring portfolio reached about $60 m during 2009.
Ahmed Shaeen, General Manger of Egypt Factors, said that this year will witness significant growth in the factoring transactions in the domestic market, given the fact that customers are now more aware of the importance of factoring and its services and they know better how to benefit from this new financial system in the domestic market.
He added, ”We held several seminars and meetings last year with businessmen and industrialists, especially at the level of small and medium enterprises, with the purpose of educating them on the significance of factoring and raising awareness of that business which started in Egypt at the beginning of last year and is still in its initial phase. It is difficult to predict accurately its growth rates at the moment until all society categories come to know it.”
He pointed out that domestic factoring took over 40% of the portfolio of the company during last year, with 60% for international factoring, stressing that the turnover of the company in general reached about $60 m during 2009.
He stressed that the packaging sector ranked first among sectors that did business with the company last year. Its share was 25% of the portfolio, followed by house furniture (20%). The third rank went to the textiles sector (17%), the fifth, food stuffs (13%), petrochemicals, fifth (95), and industrial supplies, sixth (7%).
Shaheen explained that within the framework of the company to increase awareness of factoring services in the domestic market, a seminar would be held this current week in cooperation with the Chamber of Commerce in Beheira Governorate. The purpose of such seminars, he noted, was to outreach the largest base of customers at their places and educate them on that new business and its capabilities for providing liquidity for owners of enterprises and convert their on credit sales to cash sales.