WFY’26: Egypt’s factoring market jumps 77% to EGP132bn as SME demand rises

Egypt’s factoring market recorded exceptional growth in 2025, with total turnover rising 77% to EGP132bn (approx. US$2.35bn) as businesses faced long payment cycles, constrained access to bank finance and continued pressure on liquidity. In this country report, Ghada Shams, Head of Compliance and International Factoring & FI at Egypt Factors S.A.E, examines how factoring is supporting domestic businesses, exporters and importers across a challenging economic environment.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a market where factoring volumes have grown rapidly since the product was introduced in 2005, while SMEs increasingly use receivables finance to bridge payment terms that can stretch to 180 days or more. It also examines the expansion of licensed factoring companies, the balance between recourse and non-recourse structures, international factoring and the evolving regulatory framework.

Below is an excerpt from her article.

Factoring volume has been growing for more than 20 years since its introduction to the Egyptian market in 2005. It has proved its efficiency in facilitating trade on open account terms even in tough years, such as during a pandemic, or an economic crisis or when surrounded by wars and instability, which is when factoring proves its flexibility and ability to provide good solutions. This is the case in the domestic market as well as the international market where factoring plays an essential role in supporting Egyptian exporters by providing a comprehensive package of services. Factoring also provides support to Egyptian importers especially manufacturers who purchase most of their raw materials from abroad, by giving them better, faster, and easier solutions than other sources of financing.

Factoring volume in Egypt achieved an excellent increase in 2025 reaching EGP 132bn which represents an increase of 77 per cent compared to 2024.

In the domestic market, most trade is based on postdated cheques; payment terms vary between 90 days and 180 days, and in some cases, can reach 270 days.

Due to these relatively long payment terms, factoring plays an important role in shortening the payment cycle for suppliers and enhancing their cash flow, especially for SMEs that still face problems in accessing finance from banks, which even if available, will usually be against a pledge of assets, such as commercial mortgages which in most cases will not match their finance needs.

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To read the whole article and 50 other specialist articles and country market reviews, order World Factoring Yearbook 2026 here.