Immediate financing for commercial debts and 7 conditions for eligibility!

Banks are required to report to the 'Risk Central' and the factoring transfers rights and guarantees to the intermediary, preventing the factoring of debts subject to mortgage or assignment or any guarantee that affects the rights of the intermediary. The Bank of Algeria has defined, through a new system, the conditions for banks and financial institutions to practice factoring and the procedures for this process, which involves the institution transferring its commercial debts owed by its clients to a bank or financial institution, in exchange for receiving their value immediately, with the intermediary bearing the risk of non-payment. The system aims to define the conditions for banks and financial institutions to practice factoring and the procedures for its operation, considering factoring as a process carried out within the framework of a written agreement with a substitutive effect.