EBRD Provides €10 Million Factoring Facility to Tam Finans for SMEs in Türkiye

EBRD Provides €10 Million Factoring Facility to Tam Finans for SMEs in Türkiye

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has provided Tam Finans Factoring A.S., a factoring company in Türkiye, with a €10 million factoring facility under its Trade Facilitation Programme (TFP). The facility aims to support small and medium-sized enterprises (SMEs) by providing funding for domestic and international factoring transactions. Tam Finans is the largest factoring company in Türkiye, serving SME clients, including micro-enterprises, through a network of 39 branches, 15 mobile teams, and 450 active salespeople. The cooperation with Tam Finans will help expand EBRD’s support for SMEs, which form the backbone of Türkiye’s economy.

(PRESS RELEASE) LONDON, 31-Mar-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that it will provide Türkiye’s Tam Finans Factoring A.S. with a €10 million factoring facility under its Trade Facilitation Programme (TFP), aimed at supporting small and medium-sized enterprises (SMEs).

This facility builds on the existing cooperation between Tam Finans and the EBRD, expanding the company’s portfolio by providing funding for domestic and international factoring transactions to SMEs. Established in 2012, Tam Finans is the largest factoring company in Türkiye by number of clients and branch network, focused on providing factoring services to SME clients, including micro-enterprises.

Factoring is an effective tool that helps companies improve their liquidity by providing immediate working capital financing, particularly during economic turbulence. Tam Finans, with its extensive network of 39 branches, 15 mobile teams, and 450 active salespeople, has the unique capacity to support 300,000 micro SMEs every year.

EBRD Deputy Head of Türkiye Arthur Poghosyan welcomed the facility, saying: “Global trade has suffered extensively over the last few years. First, a global pandemic disrupted economies and now the Ukraine war continues to present challenges for trade routes. These global dynamics, coupled with economic vulnerabilities and the shock of the recent earthquakes Türkiye, have made trade difficult for the SMEs in the country.”

“The EBRD is happy to support Tam Finans in extending trade finance support to businesses across the country, especially at a challenging time like this,” he added. “We are confident that the strengthening of SMEs will serve to underpin Türkiye’s domestic and international trade capacity.”

Tam Finans Chief Executive Officer Hakan Karamanli said: “We at Tam Finans are extremely privileged to continue our partnership with the EBRD through this new and pioneering facility. We believe it comes at a very valuable time for Türkiye, especially in the aftermath of the devastating earthquakes in February. The TFP line is an instrumental facility in targeting SMEs, which form the backbone of the Turkish economy, specifically addressing their short-term financing needs based on invoice discounting, and will have even higher value added than expected during Türkiye’s period of economic recovery.

The cooperation with Tam Finans will contribute to expanding EBRD’s support for SMEs in Türkiye, which form the backbone of the country’s economy. The EBRD TFP was established in 1999 to promote international trade between the Bank’s operating economies through guarantees and short-term loans to selected banks and factoring companies.

Since launching the program in Türkiye in 2013, the EBRD has facilitated over 645 transactions across the country, valued at a total of €2.5 billion, while providing technical assistance and learning opportunities, including e-learning, regular workshops, and seminars. Türkiye is now one of the most active countries in the program.

To date, the EBRD has invested more than €17 billion in various sectors of the Turkish economy, primarily in the private sector.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD