Country _ Name
Loan services / factoring / loan broking / finetrading
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time.

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.


Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

Only banks and authorised financing companies may allocate loans as their main line of business. Loans can generally be classified as commercial or consumer – based on the intended use, which might be subject to certain different rules under Turkish legislation. 

Factoring is regulated under the Law on Financial Leasing, Factoring, Financing and Savings Financing Companies No. 6361 (“FI Law”) and only factoring companies and banks can provide factoring services. 

Finetrading is also a service provided by the financing companies, to the extent it falls within the scope of financing under FI Law, authorised by the BRSA. 

Except the crowdfunding, peer-to-peer lending is not allowed under Turkish law. 

Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

To obtain a license as a financing or a factoring company:

    a. It should be incorporated as a joint stock company;
    b. Share certificates should be issued against cash and all of them should be registered;
    c. Trade name should bear one of “Financial Leasing Company”, “Factoring Company”, “Financing Company” or "Saving financing Company” phrases;
    d. The founders should meet the requirements indicated under FI Law;
    e. Members of the board of directors should have the qualifications stipulated in the corporate governance provisions of the FI Law and the professional experience sufficient to carry out the planned activities;
    f. Companies other than the saving financing companies should have a capital amount of at least TRY 50 million (approx. EUR 2,840,000), paid-in cash and free from all kinds of fictitious transactions; this amount has been determined as at least TRY 100 million (approx. EUR 5,680,000) for saving financing companies;
    g. The Articles of Association should not be in conflict with the provisions of the FI Law;
    h. The Company should have a transparent and open partnership structure that will not constitute an obstacle for the efficient supervision of the BRSA;
    i. The Company is required to submit an activity schedule covering the business plans of the intended activities, the projections on the financial structure of the organisation, the budget plan for the first three years and its organisational structure.

Application for license to BRSA is free of charge. However, the cost may be as much as EUR 15.000 or more including incorporation, translation of documents, notary public fees, legal fees, and other ancillary costs. Also, the minimum capital requirements apply.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

Loan and other financial services are strictly regulated under Turkish law and the sector is domi
nated by traditional players. 

Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

No specific studies targeting FinTech companies in Turkish market.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

Lending and other financial services are provided by traditional market players. No specific regulation has been made for digital-based players.



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