Factoring—A Financing Alternative for African Small and Medium-scale Enterprises
Domain:
socioeconomicRecord type:
paper
Creator:
Tom
Publisher:
Afr
Host:
The mainstay of many economies in Africa, small and mediumscale enterprises (SMEs) are perennially constrained by limited access to
finance owing to credit rationing and financially repressive regimes. The paper
examines the prospects for factoring, which has emerged as a viable source
for financing SMEs. After an overview of key institutional and regulatory
constraints, it outlines a framework and policy options for developing factoring
in Africa, singling out the establishment of a vibrant insurance industry as a
key prerequisite. Journal of Contemporary Issues in African Trade and Trade Finance, 3(1), 51-62
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