IIC Approves Loan To Credifactor In Nicaragua
04/29/2009This operation is expected to improve access to suitable sources of credit activities for SME’s
Washington, D.C. - On April 30, 2009, the Inter-American Investment Corporation (IIC) approved a US$500,000 loan to Credi-Factor S.A, a factoring company in Nicaragua. Credi-Factor is the first factoring company authorized by Nicaragua’s stock exchange and banking authorities to issue financial instruments on the domestic market. The company is an active member of the International Factoring Association, the largest factoring organization in the U.S.
Although factoring is a fairly new business in Nicaragua, it has grown substantially over the past few years. Companies, particularly SME’s regularly turn to factoring in search of a quick, effective source of financing. The IIC loan will be used to provide working capital financing to Nicaraguan SME’s. The maximum loan amount per company will be US$25,000.
By providing CrediFactor with financing the IIC is contributing to the improvement of the institution’s liquidity and facilitating the access to financing for SMEs, which is difficult to obtain in Nicaragua.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2008, the IIC reached US$1.5 billion in assets and approved sixty-four transactions channeling US$300.5 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Gustavo Romero
Telephone: (202) 623-3855