Factoring continues to grow successfully both in mature and in emerging markets. Through their control methods and permanent monitoring of the receivables of their clients, factoring companies or factoring divisions/departments of banks are able to provide more financing than traditional lenders to Small and Medium-sized Enterprises (SMEs) and at the same time limit their credit risk to acceptable levels.
Companies use Factoring as a flexible source of financing as it facilitates the much-needed access to finance by corporates and SMEs thereby improving their competitiveness based on the focus on Open Account Trade and the Two–Factor System, which has proven to be most effective during periods of financial and economic challenges.
WHERE: Radisson Blu Hotel Upperhill Elgon Road Nairobi, Kenya
WHEN: from Thursday 27 February 09:00 to Friday 28 February 13:00
A typical service provided by a Factor includes investigating the creditworthiness of the seller’s buyers, assuming credit risk on those same buyers and providing credit protection against the debtor default and/or bankruptcy.
Ultimately, the Factor provides the seller with a guarantee of the debtors’ inability to pay, prompt collection of accounts receivable, manages the receivables ledger, and provides financing through immediate cash advances against outstanding and assigned receivables.
FCI’s African Chapter decided to organize a regional event, focusing on a regional view on factoring, offering attendees a unique opportunity, not only to discuss the current state of the industry, new challenges and products & markets development but also to network with players from the same region.