IDB Invest is providing a loan of up to $10 million to Servicios Financieros Progreso S.A., to support the financing of micro, small, and medium-sized enterprises (MSMEs) in Chile through factoring operations. Factoring is a financial instrument that provides liquidity with a lower risk and borrowing costs.

The loan, with an initial term of up to 12 months and renewable for up to three consecutive periods, will promote financing and financial inclusion of an underserved but crucial sector for the Chilean economy.

Progreso, a key and niche player in the leasing and factoring segment, has a strong commitment to start down the path towards sustainability. As a non-bank financial intermediary, credit lines with commercial banks are Progreso’s only sources of funding. With this loan, the lender diversifies its funding sources and covers financing needs to grow its factoring portfolio in MSMEs.

The MSMEs sector faces difficulties to access bank loans. At the national level, MSMEs provide around 65.3% of formal jobs in Chile, but they receive only 20% of all commercial loans.

Additionally, as part of the agreement, IDB Invest will provide advisory services on climate financing to support the development of a sustainable corporate strategy to promote innovative financial products. In addition to specific training for Progreso staff, an analysis of the climate portfolio will be carried out, with the updated taxonomy, which will allow for a baseline from which to monitor development and its impact.

Lastly, the operation is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), and Industry, innovation and infrastructure (SDG 9).

About IDB Invest

IDB Invest, a member of the 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 companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 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 Servicios Financieros Progreso S.A.

Progreso is a leading Chilean company in the private financial sector, with more than 35 years of experience and commitment to excellence and innovation. Progreso's business culture stands out for establishing relationships of trust with its clients, delivering a transparent, honest and close service that remains current. Specialized in leasing and factoring solutions, Progreso provides real capital and financing opportunities for the development and success of Chilean MSMEs. With a 20-branch network that covers the entire country, Progreso ensures that it provides comprehensive advice that goes beyond financing itself and incorporates support to promote real and sustained growth for its clients. With a portfolio that is made up of thousands of Chilean MSMEs with clients belonging to various relevant areas of the country's economy, Progreso is an active benchmark in the private financing market.