To help support the operations of small and medium-sized businesses (SMBs) as they contend with the economic disruption brought by the coronavirus, IDB Invest and the Mexican Business Council (CMN) have unveiled an effort to offer a maximum of $12 billion in loans annually.
The two organizations noted in a joint statement, as cited by LatinFinance, that they would “seek the collaboration and support” of global investors, local commercial banks and other development banks to assemble resources to grow reverse factoring lines.
The goal is to provide revolving credit lines that have a 90-day average term in U.S. dollars or Mexican pesos. IDB Invest seeks to create $3 billion in reverse factoring lines of credit that are designed to complement current programs.
The 4.1 million small and medium-sized businesses in Mexico reportedly comprise 78 percent of employment and 42 percent of gross domestic product. However, just 23 percent get financing from commercial banks.
The statement noted that “IDB Invest seeks the expansion, acceleration and democratization of access to credit for the SMEs that make up the value chains of large companies.”
In separate news, Fairfax Software and Indicium Solutions inked a meal to make Fairfax products available in Mexico. Indicium’s eFactura software will now leverage Fairfax’s Quick Payments technology that lets clients pay invoices faster in a “one-stop-shop” setup.
Clients that utilize the technology will be offered a link to an Amazon-hosted Quick Pay site via Indicium. They will also be provided with access to a reciprocal application programming interface (API). Indicium serves more than 7,000 clients in the Mexico region and works in B2B electronic invoice generation. The company was looking to enhance its services in Mexico by joining forces with Fairfax, per a past report.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More