IDB Invest, Factotal Join Forces to Support Chile’s SMEs

IDB Invest, a member of the IDB Group, has granted $22 million in loans to Factotal S.A. (Factotal). The deal consists of a loan A of US $ 15 million to be financed by IDB Invest, with a term of up to four years; and a loan B of up to US $ 7 million to be mobilized with institutional investors, for a term of up to two years.

 

The financing will support the credit activities that Factotal conducts with small and medium-sized companies (SMEs) in Chile, financing factoring and financial leasing operations to mitigate the effects of the pandemic generated by COVID-19. Increasing access to financing for SMEs in Chile, supporting Factotal in the growth strategy of its factoring and financial leasing portfolio with SMEs in the country is another goal.

 

This deal potentially contributes to two United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG8), Industry, innovation and infrastructure (SDG 9).

 

Additionally, IDB Invest will provide technical advisory services on gender, diversity and inclusion, in order to support Factotal in identifying and defining a segmentation of the SMEs portfolio led by women. To achieve this, technical support will be provided to analyze the current data system and make recommendations, so that it can capture information disaggregated by gender and report on SMEs, owned by women or directed by women; as well as potentially informing future strategies on product development and marketing focused on this segment.

 

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 $13.1 billion in asset management and 385 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 Factotal

Factotal S.A. was established in 1993 as one of the pioneering institutions in the factoring sector in Chile. Currently, it is one of the companies with the longest and soundest experience in this market. It offers financing through factoring to Chilean SMEs. Factotal works with three business lines that are: factoring, operating finance leasing, and automotive credit. Factotal's distribution network covers the main regions of the country, which favors the diversification of its loans in geographical terms. As of today, the entity has 239 employees in total, with 15 physical branches and 8 virtual branches in Chile; 5 physical offices and 4 virtual offices in Peru and a physical office in the United States. Additionally, for the second half of 2021, it will start operations in Colombia.