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Given the lack of liquidity faced by hundreds of Colombian companies, factoring and confirmation has positioned itself as one of the main financing options for companies, as it allows them to improve cash flow and obtain immediate liquidity without debt. According to Factoring Chain International (FCI), factoring in Latin America grew by 44% in 2022, with Colombia being the country with the fourth highest factoring volume in the region. According to the “2023 Global Factoring Industry Research Report”, the global factoring scale is expected to exceed US$4.7 trillion by 2028..
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These financing models, which allow companies to sell accounts receivable (factoring) or accounts payable (confirmation), help companies in various industries maintain stable cash flow, better manage daily operations, and reduce illiquidity risk. Make payments and immediately receive working capital to pay wages, comply with leases, purchase raw materials, etc.
In Colombia, more than 1,700 companies have successfully financed themselves through factoring and confirmation, amounting to more than 700 billion pesos, through Platform, one of the country’s leading fintech companies in the sector. Mario José Márquez, former electronic billing manager at Dian and co-founder of Plataform, explains that in 2024, there is growing interest in these solutions because they offer agility and flexibility, with the advantage of not creating debt, since this transforms receivables or payables into immediate liquidity.
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Felipe Tascón, Member of the Board of Directors of Colombia Fintech (2024-2025) and CEO of Plataform, pointed out that its financing process is 100% digital, which allows for a quick assessment of the viability of invoices, ensuring that within 72 hours, the company has the liquidity it needs. In addition, since no debt is created, these instruments offer a sustainable financial alternative for business growth.
Founded in 2022, the Colombian fintech company completed an investment round a few months ago, receiving $3 million from investors Skandia Planeación Financiera SA, the corporate arm of Skandia Conglomerate venture capital investments, Progresión Sociedad Commissionista de Bolsa, among others, which are now part of the company’s new equity.
“At Plataform we offer a wide range of diversified funding sources, which allows us to effectively serve different parts of the business structure. In addition, we have the only crowdfunding platform in Colombia that connects companies that want to sell invoices with people interested in buying some or all of them and getting a higher profit than any traditional product. Today, the annual effective profitability is between 19% and 25%””, Marquez added.
With these financing options, The Colombian fintech company’s short-term goal is to provide more than $1 billion in financing to more than 100,000 companies in the country each year..
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“In addition to factoring and confirmation solutions, we develop other operational and cost optimization products that enable companies to save significant amounts of money every month. For example, several energy production and distribution companies, retailers, payments and oil and gas in different regions trust us.” Tasco pointed out.
Finally, Colombian fintech executives noted that they seek to educate small and medium-sized enterprises (SMEs) on how these alternatives work and how to solve liquidity problems. Emphasizing the need for all businesses, whether SMEs or large stores, to take advantage of the rise of e-invoicing to boost their business growth..
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