IDB Invest will provide financing of up to $10 million to Total Finco, a Costa Rican company specialized in the leasing of various assets including vehicles, trucks, equipment, and machinery. The funding will expand access to these assets for micro, small and medium-sized enterprises (MSMEs) owned or predominantly led by women, fostering their growth and development.

With this financing, FINCO anticipates a 172% increase in the value of leases provided to MSMEs, particularly those managed or owned by women, reaching $33.6 million by 2028. Additionally, this funding aims to boost the local value chain by increasing purchases from local suppliers by 188% over the same period.

With this financing, IDB Invest will enhance access to sustainable, industrial, commercial, and innovative assets for MSMEs and individual entrepreneurs. This segment of the market typically faces significant barriers in securing formal sources of financing.

Additionally, IDB Invest will offer advisory services to Total Finco, enabling the development of a gender-focused value proposition to enhance access to its assets for women-led MSMEs.

Francisco Javier Urra, IDB Group representative in Costa Rica, stated, “This transaction aligns with one of the IDB Group's core pillars in the country, which is fostering a conducive environment for the private sector to ensure broad, inclusive economic growth that benefits the nation's MSMEs. Moreover, this new initiative is notable for its gender focus, offering solutions to bridge financial system gaps for women-led enterprises.”

This financing marks IDB Invest's second venture into the leasing segment in Costa Rica with non-banking institutions. It is also the first initiative aimed at enhancing access to leasing products for MSMEs, with a particular focus on businesses owned or managed by women.

"Total Finco was established with the aim of providing financial solutions to MSMEs and professionals who face limited access to the traditional financial sector. This transaction underscores our dedication to expanding financial inclusion in Costa Rica, with a particular focus on bridging the financing gap for women-led businesses. We deeply appreciate the trust placed in us by IDB Invest and are proud to have the support of such a distinguished financial partner to achieve our goals," stated Carlos Ortiz, General Manager of Total Finco.

This operation is anticipated to contribute to four United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), and Responsible Consumption and Production (SDG 12).

About IDB Invest 
IDB Invest, a member of the Inter-American Development Bank 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 companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.                

About Finco
Total Leasing Finco S.R.L. (“Total Finco”) is a Costa Rican company focused on the leasing of vehicles, fleets, medical and electronic equipment, as well as machinery and equipment for contracting and other types of companies. Since its founding, Total Finco has focused on providing leasing, mainly to micro, small and medium-sized businesses, as well as entrepreneurs and independent professionals. These sectors mostly do not have access, or this is limited to the traditional financial sector, and Total Finco has offered them a solution with an agile and secure service, under prudential credit practices.