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Tuesday, 4 October 2022

EFG Hermes unit targets education providers in Klickit tie-up

EFG Hermes Corp-Solutions eyes schools in Klickit’s network: EFG Hermes Corp-Solutions will provide leasing and factoring services to education providers in local fintech startup Klickit’s network, according to a statement (pdf). The agreement between EFG Hermes Corp-Solutions and Klickit will provide more than 55k education service providers with access to financing for capital expenditure, including headquarters, school equipment, and buses, and allow them to fill cashflow gaps by borrowing against forecasted tuition revenues.

What they said: “Schools face difficulties when accessing finance; hence we want to facilitate this access to narrow the cashflow gap and help contribute to the development of the education industry,” said EFG Hermes Corp-Solutions CEO Talal Elayat.

The agreement comes as NBFS providers make inroads in the education space: We’ve seen similar agreements in the past few years, including EFG Hermes’ ValU signing partnerships with school operator GEMS and the American University in Cairo to provide tuition financing. Beltone Financial’s consumer financing arm BelCash last year signed an agreement with EGX-listed education outfit CIRA to provide parents whose children attend any of CIRA’s schools with tuition fee loans with a 12-month repayment period, and Contact Financial’s consumer financing arm has its own tuition facilitation agreements with several education institutions. For more on how NBFS players are taking on the burden of education financing, check out our recent deep dive.

Not sure what factoring is? Our explainer has got you covered.

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