IDB Invest, a member of the private sector of the Inter-American Development Bank (IDB) Group, has provided a $10 million loan to the financial institution Primus Capital, S.A. The aim of this alliance is to increase access to financing for small and medium-sized enterprises (SME) in Chile, through instruments such as factoring and financial leasing.
SME are an essential part of Chilean economic growth and access to financing is one of the main barriers to their growth. Factoring and financial leasing play a key role in reducing the external financing needs of SME, helping meet liquidity demands and other financing requirements. They also help reduce the risks and costs of debt, which benefits suppliers and tenants.
This is the first operation of Primus Capital with IDB Invest. In addition to financing, the operation includes support for Primus to implement improvements in its environmental practices.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About Primus Capital, S.A.
Primus Capital was founded in 2014 as a factoring and leasing company with a focus on SME, aimed at meeting the working capital financing needs that large banks can not cover. With a strong leadership vocation, Primus has achieved in its 5 years of history to position itself as one of the main non-banking players in the Chilean factoring industry. In this same spirit, during 2017 it began operations in Peru, where at the end of 2018, it closed with profits and ended up being one of the largest non-banking players in that country. As of December 2018, Primus consolidated loans reached $177 million, distributed in around 1,000 active clients