2026 Morocco factoring: complete BFR financing guide

Step 1: signing the framework contract between company and factor, with approval of a client list whose invoices can be assigned (factor's due diligence on these clients' solvency). Step 2: company issues customer invoice, sends simultaneous copy to factor. Step 3: immediate transfer by factor of 80-90% of invoice TTC amount to company account (within 48-72 hours). Step 4: customer pays invoice directly to factor at maturity (30, 60, or 90 days). Step 5: factor returns balance (10-20%) minus commissions to company. "Without recourse" option: factor bears unpaid risk. "With recourse" option: in case of default, company must return the advance.

Factoring is particularly suited for SMEs with: (1) a solid customer portfolio but long payment terms (60-120 days) — typical in industry, construction, IT services, (2) rapid growth generating increasing BFR that bank credit alone cannot absorb, (3) export operations where foreign client risk is difficult to assess internally. Less relevant for companies with few customers (concentrated risk refused by factor), B2C (no factoring for individuals), or very cyclical seasonal activities. Total cost (5-10% all-in annual) is higher than bank credit, but associated services (collection, risk protection, reporting) bring non-negligible added value.