Sustaining Access to Finance for Africa's Small and Medium Enterprises During and Post COVID-19 Crisis: Factoring to the Rescue

The COVID-19 crisis has caused many problems, one of which is the challenge for African SMEs to access traditional debt financing from banks. This situation has made it imperative to explore other alternative forms and sources of financing that SMEs can rely on to sustain their operations. It is in this context that this article examines the useful role that factoring could play in sustaining financing to SMEs in Africa amidst and after the COVID-19 crisis. The article recommends that a multifaceted approach involving the implementation of both legal and other forms of interventions such as digitalisation is imperative for growing factoring as a financing alternative for African SMEs.