IIC approves US$10 million loan to Factotal S.A. in Chile
Plans for more than 3,800 financing operations with Chilean SMEs.
Washington, D.C., September 3, 2014 — The Inter-American Investment Corporation (IIC) has approved a loan of up to US$10 million to Factotal S.A. This operation will provide support to the Chilean SME sector in the form of factoring transactions, financial leases, and operating leases.
“This loan reaffirms the IIC’s confidence in Factotal S.A. as an important stakeholder in the industry of financial intermediation for SMEs. This operation contributes to and ensures a reliable service for our clients, as has been the case since 1993,” said Bonifacio Bilbao, Factotal’s chief financial officer.
“This IIC operation will contribute to improving access to medium-term financing for SMEs in different sectors, such as the service, industry, commerce, and mining sectors. More than 3,800 operations are planned for SMEs in Chile,” said Ana María Orellana, IIC lead investment officer in charge of the operation.
Factotal S.A. was established in 1993 and has targeted the SME segment. Its main line of business has been offering factoring services to SMEs in need of liquidity; this includes the factoring of invoices, bills of exchange, and checks. In 2004, Factotal began offering financial leasing services in order to diversify its line of products and services. Subsequently, in 2011, it entered the business of financial and operational leasing of technological equipment through its subsidiary FT Vendor Finance Chile S.A. As of 1996, Factotal began to expand nationally and now serves a large portion of Chile through its 21 branches and head office.
This will be the IIC’s third operation with Factotal; the previous operations benefited more than 2,000 SMEs in different economic sectors in Chile.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Ana María Orellana
Telephone: + (562) 2431-3707 in Santiago, Chile