Factorline purchases, at a discount, invoices, bills of exchange, and checks issued by SMEs in the normal course of business. Factoring is used chiefly by SMEs that usually do not have easy access to bank financing because they cannot provide security, lack audited financial statements, or do not have a track record in the financial system.
This is the IIC’s third operation with Factorline; the first two were short-term. Under this new facility, Factorline will be able to disburse the resources in line with the increase in the volume of its operations. The company needs additional funding because of the growth of international factoring resulting in part from the free trade agreements signed by Chile and in part from Chile’s booming economy.
The proceeds of the loan will be used to finance international factoring operations with recourse for enterprises that need to finance working capital. It will help Factorline increase its volume of business and serve a larger number of Chile’s trade companies, thus benefiting small and medium-size Chilean importers and exporters.
United States Dollar