• First Mexican financial institution that establishes a value proposition for women-led SMEs through its leasing business line

IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a loan denominated in Mexican pesos and equivalent to $50 million to the financial institution company Crédito Real, in Mexico. The funds will be used to support the progress of its leasing business line for small and medium enterprises (SMEs). Through this operation, Crédito Real seeks to strengthen its strategy to attract a greater number of female clients to its portfolio.

The financing contributes to improve how Crédito Real focuses its services provided to women-led or -owned SMEs, to strengthen their position in the leasing market and become a preferred financial institution for women clients. Crédito Real will evaluate the value proposition, incorporate a gender approach in its marketing strategy and analyze new possible products and services for this customer segment.

Leasing is a financing alternative for SMEs that cannot access traditional bank financing, either because they have no credit history or because they cannot offer sufficient guarantees. These obstacles tend to put SMEs led by women at a disadvantage compared to those owned by men. The leasing allows companies to obtain financing because the lender maintains ownership of the leased assets, which can serve as collateral.

The operation potentially contributes to four of the United Nations Sustainable Development Goals: Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Reduced Inequalities (SDG 10).

The deal includes IDB Invest’s advisory services to help improve the internal policies and practices of Crédito Real in the area of gender equality, using the gender analysis tool based on the Women’s Empowerment Principles. In addition to its gender strategy for SMEs, Crédito Real will focus on gender issues in its internal operations and establish an action plan to strengthen internal norms and practices in the area of ​​gender equity.

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 $12.4 billion under management and 342 clients in 24 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.

About Crédito Real
Crédito Real is a leading financial institution in Mexico, with a presence in the United States, Costa Rica, Panama, Nicaragua and Honduras, focused on the granting of loans with a diversified business platform, which mainly includes: payroll credits, SME credits, group credits, credits for used cars and through Instacredit, consumer credits. Crédito Real offers products mainly to the low and medium income segments of the population, which historically have been poorly served by other financial institutions.