Digital Factoring
SMEs need to cover their short-term capital needs, however, their invoices have terms up to 120 days. This causes them to look to the traditional financial system for expensive financing alternatives that evaluate the risk of the SMEs and not the large companies.
We offer Working Capital to MSMEs through quick, simple and flexible financial solutions in order to accomplish greater financial inclusion using fast competitive rates.
DF helps the SMEs to improve the economic productivity and gives them access to the financial system, allowing them to grow and create new employment. According to SDGs by 2025 the Company will buy 114k invoices, which translates into a 59% increase in financial inclusion. Focusing on:
• Promote sustainable and inclusive economic growth, full and productive employment. Encourage the formalization and growth of SMEs, including access to financial services.
• Build resilient infrastructure, increase the access of small-scale industrial to financial services.
Small businesses need to cover their short-term capital needs, however, their invoices have terms of 30, 60, 90 and up to 120 days. This causes them to look to the traditional financial system for expensive financing alternatives that evaluate the risk of the SMEs and not the large companies.
* LatAm entrepreneurs cite access to finance as one of the main reasons for business failure. In Peru, 44% of SMEs do not have access to the financial system.
* Most SMEs that have access to the financial system, work with the traditional banking system, which demands high costs and lengthy approval procedures, compared to factoring alternatives.
We are the first fintech to do non-recourse factoring in a 100% digital way in Perú. We buy invoices, bills and professional fees receipts issued by small businesses and entrepreneurs without the need of a credit evaluation; we only evaluate the company that has the obligation to pay, what represents a real financial inclusion. Digital Factoring offers fast competitive rates because follows a seamless online process to validate its client´s payors´quality which reduces non-payment probability.
- Dedicated credit line: Digital Factoring has pre-defined diversified credit risk strategy.
- Tech-based processes: Digital Factoring has a robust technical infrastructure.
- Debtor-centered evaluation: Digital Factoring does not screen it´s clients but rather their debtors.
- Diverse product portfolio: Digital Factoring offers different product lines.
- Hybrid sales model: Digital Factoring follows a hybrid online-offline.
Expected results:
- Fast: Advance payments for negotiated invoices approved in less than 48 houts.
- Inclusive: The companies that are getting financing approvals are those previously left out.
- Fair: Competitive interest rates ranging between 1.5% (PEN) and 1.8% (US$).
The factoring market in Latin America has grown a total volume of USD$ 148 Bn. SMEs account for over 90% of firms in LatAm, employ 63% of the workforce, and contribute to 35% of the GDP.
Our customers are the SMEs who are suppliers of the top 6 thousand companies.
- (PEN): Top 3,000 (Source: Peru Top Publications)
- (US$): Top 6,000 (Source: Peru Top Publications)
According to our data of customers until 2020, around 1,000 SMEs (85% micro enterprises, 12% small enterprises, 2% medium enterprises and 1% large enterprises) used our service and benefit by:
- Receiving an advance Payment, having their money in 48 hours instead of waiting 30, 60 or 90 days.
- Didn’t pass through any credit evaluation
- Zero risk in case of nonpayment.
- Didn´t have to worry about the collection of the invoices, that´s our responsibility.
- 100% digital experience. Didn´t have to move from their home or office to do factoring.
- Scale safe and private digital identity and financial tools to allow people and small businesses to thrive in the digital economy.
We are a fintech specialized on non-recourse factoring. We buy invoices issued by SMEs without the need of a credit evaluation; we only evaluate the company that has the obligation to pay.
DF counts with it´s own platform using APIs and Google Cloud Technology and offer multiple types of factoring services according to each client, depending on the companies needs and sizes. Our online platform works 24/7 and our customers can do factoring from any place and device in a fast, secure and simple way.
Financially, the business model has been proven during our 4 years of operations, growing exponentially.
- Growth: An organization with an established product, service, or business model rolled out in one or, ideally, several communities, which is poised for further growth.
Digital Factoring is a Peruvian fintech based in Miami, Florida with the purpose of educating consumers and democratizing access to financial services for SMEs, through fast, simple and flexible factoring online operations and share our interest in implementing our growth strategy by scaling our business model into new markets in Latin America and share our view that the bank of the future will be built by being receptive and developing high quality products that really help entrepreneurs and SMEs improve their finances.
Our fantastic employees, long-term perspective, significant expertise in the industry, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further and together provide a long term impact on consumers and on the nation's economy.
We are convinced that from Miami we can have the necessary funding to finance Latam companies, with great returns for US Investors.
Chief Marketing Officer