Cairo, June 2023 – Tadbiir for Leasing and Factoring organized a workshop titled “Your Comprehensive Handbook for Integrated Financial Solutions” in the presence of Mr. Ahmed Kamal Selim, Founder, CEO, and Board Member of Tadbiir, and Mr. Amir Kirollos, Founder and Board Member of the company. The workshop was attended by a select group of journalists and economists.
The workshop encompassed discussions of various financing solutions, notably the operational aspects of financial leasing and its benefits, the factoring system and its advantages, as well as the rights of customers – companies and individuals. The workshop also delved into strategies to disseminate financial awareness and cultivate a culture of novel financing solutions.
Mr. Ahmed Kamal Selim, Founder, CEO, and Board Member – Tadbiir for Leasing and Factoring, said “Discovering fresh financing solutions to bolster Small and Medium-sized Enterprises (SMEs), which constitute the largest proportion of Egypt’s industrial and commercial sector in terms of employment and productivity, has become a top priority for economists. The current milieu, characterized by the shortage of essential liquidity for most business owners, owing to various factors, has compelled the Egyptian market to gravitate towards new solutions, such as financial leasing and factoring, as the ultimate refuge. These solutions offer reliable measures that are responsive to market changes stemming from financial crises.”
During the workshop, Selim explained that “Financial leasing covers a diverse range of assets deployed for productive activities, spanning industrial, commercial, service, and agricultural sectors, including production buildings, service and administrative facilities, machinery and equipment, production lines, and vehicles.” He pointed out that the growth rates in the issuance of financial leasing activity are robust and indicative of the prevailing trend among several companies and institutions towards embracing it, with an impressive growth rate of 20.1 percent recorded in the past few years and a total of 2,999 contracts issued in 2022.
Selim added that “Financial leasing clients have a set of advantages, including the provision of alternative financing options to the lessee and greater liquidity that can be channeled towards other aspects of business operations. Additionally, clients can benefit from the early repayment feature and enjoy the freedom to choose whether to own the asset or not.” He stressed that financial leasing allows customers to purchase the leased asset at the end of the lease contract for the same amount agreed upon in the financial leasing contract.
Mr. Amir Kirollos, Founder and Board Member – Tadbiir for Leasing and Factoring, stated that “Factoring is one of the solutions that has made significant contributions to financial technology in Egypt, propelling it to an advanced rank among the fastest-growing sectors, particularly within the emerging companies sector. Factoring also plays a pivotal role in augmenting the production capacity of companies and enhancing their prospects for securing financing. Its primary goal is to secure financial liquidity and improve financial indicators.”
Kirollos noted that “Factoring offers a multitude of benefits, including mitigating the risks of bad debts and losses that may impact the net profits of the commercial project, as well as bolstering the volume of purchases without exerting any pressure on the company’s banking facilities. Furthermore, it eases the process of entering foreign markets by providing guarantees, also known as ‘international factoring’.” He emphasized the noticeable trend towards the factoring system in recent times, with a growth rate of approximately 17.8 percent recorded in the past period and a total of 543 contracts issued in 2022.
Tadbiir for Leasing and Factoring:
Tadbiir for Leasing and Factoring is a company that falls under the purview of the Financial Regulatory Authority. It commenced its operations in the last quarter of 2022, offering specialized financing services to companies operating in the Egyptian market. Tadbiir extends financial support for all types of assets to its corporate clients through its financial leasing services, in addition to financing working capital through its factoring services.