- Egypt’s Financial Regulatory Authority (FRA) now requires factoring companies to verify invoices through a unified electronic system before granting finance.
- The digital factoring system, launched in February in partnership with e-finance, aims to prevent double financing, enhance transparency, and improve sector efficiency.
- The system allows electronic enquiries and “freezing” of invoices, integrating with government entities like the Ministry of Finance and the Egyptian Tax Authority.
- Factoring companies must include contract clauses confirming registration of security rights in the Movable Collateral Registry, as per Law No. 115 of 2015.
- The next phase will fully digitize the factoring process, streamlining procedures and reducing costs; the decision takes effect the day after publication.
Source: zawya.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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