The purpose of the proposed project is to provide Factoring, S.A. with a loan to expand its lending operations to small and medium-sized enterprises (SMEs) in Nicaragua, primarily in the form of invoice discounting (factoring) and working capital financing. The project would help the company grow its loan portfolio and diversify its medium- and long-term funding sources.
This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. To enable the borrower to better understand the IIC’s requirements, Factoring, S.A. will be required to attend the IIC financial intermediary environmental training workshop. Each subproject will be subject to an environmental review procedure and must comply with national labor and environmental laws, regulations, and standards, as well as the IIC’s environmental and labor guidelines.