WASHINGTON – IDB Invest will provide a revolving loan of up to $10 million to Total Servicios Financieros to expand access to financing for micro, small, and medium-sized enterprises (MSMEs) in Peru. The operation will also mobilize up to $10 million in third-party funds.
MSMEs play a crucial role in Peru’s development, as they account for 89.1% of privatesector employment in the country. 95% of Total Servicios Financieros’ loan portfolio is allocated to this segment.
Total Servicios will use this financing to offer factoring products that convert companies’ accounts receivable into immediate liquidity, as well as financial leasing that allows companies to more easily acquire assets through payment installments and direct lending. These solutions will benefit a key business segment of the Peruvian economy.
Factoring and financial leasing are well-established, efficient ways for MSMEs to meet their liquidity and investment financing needs. However, these arrangements are little used in Latin America and the Caribbean. In Peru, the factoring market accounts for only 4.4% of the country’s GDP, while in more mature markets, such as Chile, it reaches 16% of GDP.
IDB Invest will also provide technical advice to strengthen Total Servicios’ sustainability strategy, including the design of a framework for issuing thematic bonds and preparation for future sustainability-linked financing operations.
This project reaffirms IDB Invest’s commitment to productive development, financial health, and sustainable growth in Peru, supporting MSMEs as key drivers of the regional economy.
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 $22 billion in assets under management and over 400 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. Visit our website www.idbinvest.org/en.
About Total Servicios Financieros
Total Servicios Financieros – a lending company in the Peruvian financial system with over 27 years of experience – is a leader in financial leasing and factoring. It is part of the Servicios Financieros Progreso group (Chile), recognized as one of the region’s top non-bank financial institutions. It is committed to advancing sustainable growth in Peru through a service model focused primarily on formal micro, small, and medium-sized enterprises operating in strategic sectors such as transportation, mining, construction, commerce, and services. Total Servicios Financieros has a strong nationwide presence, with operations throughout Peru and offices in Lima, Arequipa, Piura, Trujillo, Cajamarca, Chiclayo, and Huancayo.