Financial Inclusion in Action

Innova Funding

Financial Inclusion in Action

Inclusive factoring that empowers Peruvian companies and entrepreneurs, boosting their access to finance and economic growth.

"Lima Metropolitan Area, our solution has succeeded in capturing customers in 21 regions of Peru, offering financial inclusion nationwide. "

Peru

For-profit, including B-Corp or similar models

In Peru, 99.6% of the companies are MSEs and are the main source of employment, generating around 59% of the employed EAP and, on average, only 7% of them have access to the traditional financial system, added to the lack of knowledge about other options, make some entrepreneurs access informal lenders and others cannot access cash liquidity from the financial system. The latter for reasons such as: a feeling of complexity to qualify, high management fees and low financial literacy. This problem is aggravated in some production chains, due to the high costs associated with the distance at which these MSEs are located, increasing the risk they represent for traditional actors. MSMEs today are highly vulnerable, not very digital, excluded from fair financial environments, with low productivity (large companies are 3.7 times more productive than small formal companies). They have 80% of the labor force in Peru, and represent 99% of taxpayers, equivalent to 20% of the tax collection. In innova-funding.com with the SME digital factoring service you get the lowest price, we have brought liquidity with a fair price offer.

Promote the development of the country by facilitating the insertion of more microenterprises that do not have access to liquidity with fair prices, through our factoring service. We serve those who cannot be included by the traditional financial system, such as low-income rural communities, those living in poverty, and thousands of MSMEs that have no credit history, do not have collateral or guarantees, or are negatively risk-centered. To address this reality, we have developed a system that helps MSEs take control of their finances through a downward invoice auction, where they can find the best available rate. The MSE can make use of the “Advance Rate” functionality, whereby it proposes an ideal sales rate for its invoice; the funders receive an automatic notification of the proposal and, if they agree, accept it. In this way, the MSE has access to better prices. Our platform, 100% online, consolidates its efforts to provide transparency, fair prices and financing power to all of Peru. Currently, we serve more than 1,400 MSMEs in 21 regions of the country and have managed more than S/ 681,072,594.58, with more than 15,175 transactions (invoices) handled. http://innova-funding.com/

"More than 1,400 micro, small and medium-sized enterprises (MSMEs) have benefited from our factoring services. We have especially identified two groups that tend to be excluded from traditional financing. The first group is made up of micro and small companies in the interior of the country, mainly in the agricultural sector. They operate through cooperatives or local organizations and require financing to purchase inputs, pay family suppliers and cover administrative expenses. Traditional banking services do not usually reach these areas or have a very limited presence, and many of these people work with their families, including the elderly, women and young people. The second group includes entrepreneurs affected by previous debts, especially after the pandemic, which has led them to be listed in credit bureaus. Although they have sales and activity, the formal financial system closes its doors to them, leading them to close their businesses. Additionally, through the Entrepreneur Festival, a digital event of Innova Funding, we have trained almost 80 thousand people. We also distributed 4 digital books with educational content to more than 100 thousand people. In total, more than 180 thousand entrepreneurs and allies are part of our network of beneficiaries.