Fawry Gets FRA Preliminary Approval to Add Factoring

In Short

Fawry said its subsidiary, Fawry Consumer Finance, has received preliminary approval from Egypt’s Financial Regulatory Authority to add factoring to its business activities.

Factoring is a way for a business to get cash by selling unpaid invoices, basically getting paid earlier instead of waiting for customers to pay.

What Happened: How Fawry Plans To Offer Factoring In Egypt

Fawry announced that the Financial Regulatory Authority (FRA) has given its subsidiary, Fawry Consumer Finance, preliminary approval to expand into factoring.

Fawry said it will complete the required corporate amendments and regulatory procedures to obtain a final licence before it can conduct factoring activities.

The company said the move supports its long-term growth strategy, including revenue diversification, and strengthens its presence in Egypt’s non-banking financial services sector.

Fawry said that once the final licence is obtained, it plans to offer factoring solutions to help businesses address working capital needs and manage cash flow more efficiently.

The company also said its MSME loan portfolio exceeds EGP 3.5 billion, and that it plans to use its merchant relationships and business reach to offer factoring that lets eligible businesses convert outstanding invoices into cash.

Fawry CEO Eng. Ashraf Sabry said, “Receiving the FRA’s preliminary approval marks an important step in expanding our financing offering to businesses.”

Why It Matters

For enterprises and MSMEs, factoring can provide faster access to funds tied up in invoices, which can help with cash flow.

For Fawry, adding factoring would expand the types of financing it can offer through Fawry Consumer Finance, once the final licence is secured.