Rapid globalization of trade has brought distant locations closer and led to the emergence of new financial instruments and new solutions to cash requirements. Factoring became widespread in Turkey when the national economy turned towards international markets in the 1980s. Within an environment of increasing competition, suppliers looked for new ways to reduce risk and assist their customers. These developments created favorable conditions for the rapid growth of the factoring sector in Turkey.

Under such conditions, GİSAD Faktoring A.Ş. was established on 21st October 1999 with a paid-in capital of YTL 1 million to offer trade finance products and solutions to exporters to in keeping with the needs of its principal shareholder, GİSAD Foreign Trade. Having nine years of success behind it, today GİSAD Factoring provides its domestic and international customers with all factoring services. In addition to factoring operations, the wide product range of GİSAD Factoring also includes credit intelligence, trade receivables accounting, credit insurance, collections and other areas of finance.

GİSAD Factoring has shown a steady growth and created strong partnerships with 235 correspondents in 63 countries. As a result, it has become a major important player with international reputation.

Getting closer to its objectives every year, the company has begun institutionalization as part of compliance with the regulations of Banking Regulation and Supervision Agency (BRSA) and completed the preliminary audit phase in 2007. Service territories have expanded by 100%, a modern office system was introduced, new IT infrastructure investments have been completed, and an efficient reporting and audit mechanism was established also during the past year. 2007 was also an important year in improving the product range, and funding of high quality receivables solely based on invoice and not supported by any payment instruments in respect of their source has been included in efficient products.

Compliance with BRSA regulations is aimed at improving the image of the sector and preventing unfair competition. It is thought that the banking sector will not be able to offer an effective funding to SMEs due to the present process of compliance with Basel II criteria. This appears to be a very important factor for the development of the factoring sector. Therefore, these developments have already led to growth in real terms as far as placements, number of customers, depth and profitability are concerned.

GİSAD Factoring, which had ranked 22nd in terms of total - domestic and international -turnover in 2006, continued its steady growth and became 17th in 2007.

Backed by the international experience of GİSAD Foreign Trade, the company makes a difference with its fair and honest service offered to customers. GİSAD Factoring aims at surpassing the growth rate of 2007 and improving equity efficiency in 2008. To this end, it has decided to increase its capital from YTL 8,750,000 to YTL 17,500,000.