IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has signed a loan of up to $10 million with the financial institution Incofin. The objective of the project is to increase access to financing for small and medium enterprises (SME) in Chile, supporting the growth of the factoring and financial leasing portfolio of Incofin for SME in the country.
Factoring and financial leasing are instruments that cover the demand for liquidity and financing for investment of SME with a reduced risk and lowering the cost of debt. The funds from this operation will be used for loans for SME through these low-cost financing alternatives.
IDB Invest will also support Incofin in the area of anti-money laundering/combating the financing of terrorism (AML/CFT). The entity will carry out an analysis of the identification of gaps with respect to existing policies and procedures and will draw up an action plan to implement the identified improvements and strengthen its policies and procedures in these matters.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
Incofin Servicios Financieros is one of the three main non-banking financial services companies in the Chilean market. With more than 25 years of experience, today he manages a portfolio of loans amounting to $150 million and more than 2,500 clients. Since its origin, its orientation has been to provide financing to small and medium-sized companies in all sectors of the economy, through factoring and financial leasing. Incofin has a consolidated network of 19 branches throughout the country, which in recent years has incorporated a digital platform that allows operations or inquiries in a 100% on-line.