The launch of factoring operations under the BLUPASS project marks a significant step in improving financing for Cameroonian SMEs. Access to finance has long been a challenge for small and medium-sized enterprises, particularly concerning working capital needs, which are especially pressing for micro and small businesses. Factoring emerges as a viable solution to this ongoing issue.
Factoring, regulated by Law No. 2014-6 of April 23, 2014, offers an innovative financing mechanism for many businesses. This system allows a company, known as the “client,” to receive early payment from a credit institution, referred to as the “factor.” Consequently, invoices owed to the company are settled with the factor instead of the business itself, which helps to alleviate cash flow challenges and outsourcing administrative tasks.
The primary stakeholders involved are companies based in Douala, operating across sectors such as commerce, manufacturing, brewing, shipping, and metallurgy. Notable participants include Tradex Cameroon, Total Cameroon, Ola Cameroon, Cimencam, CIMAF, and others. These companies will identify eligible SMEs within their networks that can benefit from factoring and compile a list of these businesses with outstanding invoices for submission to the Société Camerounaise d’Équipement (SCE).
Additionally, the Ministry of Small and Medium-Sized Enterprises (MINPMEESA) launched a digital platform for supporting and financing SMEs in partnership with BLUPASS on December 18, 2023. This platform not only facilitates factoring and leasing mechanisms but also provides non-financial services, such as enhancing accounting skills through a cloud solution. This service aims to improve overall company management and accounting practices.
With both technical and administrative readiness, BLUPASS and SCE are set to initiate factoring on this digital platform, promising a brighter future for SMEs in Cameroon.
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