IIC Approves US$8 Million Loan to Eurocapital S. A. for Factoring Operations in Chile


The proceeds of the loan are expected to benefit some 150 Chilean SMEs

Washington, D.C., September 12, 2013 — The Inter-American Investment Corporation (IIC) has approved a loan of up to US$8 million for Eurocapital S.A. The proceeds of the loan will be used largely to fund the international factoring operations of small and medium-sized enterprises (SMEs) in Chile. During the first year, the proceeds of the loan are expected to fund some 400 factoring operations.

“By funding Chilean financial intermediaries, the IIC is helping improve SME access to sources of financing suited to their working capital needs,” noted Ana María Orellana, IIC lead investment officer in charge of the operation.

Factoring is an effective tool for financing SMEs, owing to the speed and simplicity of its processing. Companies sell their accounts receivable to a financial institution, which gives them cash on the spot in exchange for a discount on the value of their documents.

This is the IIC’s third operation with Eurocapital. Both of the preceding operations were loans that supported more than 80 Chilean SMEs and helped Eurocapital grow and prosper.

Since 1998, Eurocapital has been in the business of purchasing—with recourse—invoices, bills of exchange, checks, contracts, promissory notes, and other instruments issued by SMEs in the normal course of their operations. Eurocapital has a 2.9% share of Chile’s factoring market and a network of 19 branch offices throughout the country.

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. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 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

Email: anamariao@iadb.org