IIC Grants A Loan Of Up To US$2 Million To An International Factoring Company In Chile
06/06/2005Washington, D.C.— On June 7, 2005, the Inter-American Investment Corporation (IIC) granted a loan of up to US$2 million to FactorLine S.A., an international factoring company in Chile. The loan will enable the company to secure the funding it needs to expand operations and serve a larger number of Chilean companies involved in foreign trade.
International factoring consists of discounting trade documents. It is used by small and medium-size companies that generally do not have easy access to bank financing. In Chile there are at present some 100,000 small and medium-size companies, barely 6,000 of which have access to formal factoring arrangements. Through this project the IIC will be providing working capital financing through a specialized financial institution serving the needs of small and medium-size import and export companies. IIC support of this financing mechanism will allow small and medium-size companies to more rapidly convert export receivables into cash.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Jorge Ciurlizza
Telephone: (202) 623 3981