The Bank of Algeria has issued formal guidelines to regulate factoring operations conducted by banks and financial institutions. Under instruction No. 09-2026, the central bank outlines the practical procedures for this activity, which involves the transfer of commercial receivables from a business client to a financial entity in exchange for immediate payment, with the institution assuming the default risk. The new regulations mandate a written contract specifying key details such as the identities of the parties, the object of the agreement, financial caps, and termination conditions. Financial institutions are required to conduct prior assessments of both the client and the debtor. These operations are limited to receivables from debtors residing in Algeria. The framework also dictates that invoices must be accompanied by a summary list, and that the subrogation of rights must be formalized through official receipts.