Factoring in Algeria: what Regulation No. 26-03 of 13 August 2026 provides

What the text says

Regulation No. 26-03 of 29 Safar 1448 (13 August 2026) defines the conditions for carrying out factoring and how it operates.

Under Article 3, factoring operations are treated as credit operations. Carrying them out on a habitual basis is reserved to licensed banks and financial institutions.

Eligible receivables

Trade receivables must be evidenced by invoices or an equivalent document (Article 4). Article 5 sets these conditions, under the responsibility of the adhérent (the client transferring receivables):

• receivable certain, liquid, fixed in amount and not disputed by the debtor
• payment due in less than six (06) months from the invoice date
• receivable not extinguished, freely transferable and not burdened by an assignment, pledge or other security
• debtor not in cessation of payments, judicial reorganisation or liquidation
• no extension of the due date at the transfer date

Contract, subrogation and remuneration

The contract is written and concluded before any financing by the factor (Article 6). A contract financing receivables already financed under another factoring contract is null and void (Article 7).

The adhérent marks invoices with the subrogation mention (Article 10). It notifies the debtor of the subrogation without delay, by registered letter with acknowledgement of receipt and by any other means leaving a written trace (Article 11).

The factor's remuneration includes, among other items, a financing commission and a factoring commission (Article 12). The factor must make its banking conditions known to clients and the public.

Accounting rules and next steps

Factoring operations follow the same classification and provisioning rules as other receivables (Article 14). Data is reported to the corporate and household credit register (Article 16). Implementing rules are set by instruction of the Bank of Algeria (Article 17).