3 lending companies helping MSMEs in Latin America

By Edlyn Cardoza

SMEs represent a large percentage of all businesses in LaTAm. One of the biggest problems MSMEs face is the lack of access to credit. Lack of capital has resulted in an SME funding gap.

Digital Lending is a trending practice where consumers can seamlessly secure a loan online with minimum paperwork required. The process of submitting documents, authentications, and loan disbursement through channels available to end users/consumers, such as mobile or internet banking platforms. Digital Lending can offer a plethora of market opportunities to various traditional lenders (banks), NBFCs, and innovative start-ups.

The new-age digital lending players have showcased an ability to expand their customer base by capitalising on the needs and solving the challenges MSMEs face in accessing formal credit.

Below are 3 lending companies helping MSMEs in Latin America:

• Afluenta

Afluenta allows individuals to apply for personal and business loans from $20,000 to $1,000,000 in 12, 18, 24, 36 or 48 months terms. The applicant indicates the amount of money they want and the period in which they would be willing to pay it. Investors compete to invest their money through the auction modality indicating the money with which they wish to participate, from $ 50 to 100% of the total amount requested and the rate at which they would be willing to invest. When the total money offered by investors reaches that requested by the applicant, individual investments are consolidated into a single credit with their corresponding obligations. If you want to deposit new funds into your account, the minimum re-investment amount is $1,000. There are no maximums to invest in Afluenta.

• Cumplo

Cumplo is the largest SMB lending network in Latin America, which through technology, can make the financial system fairer and more accessible for companies. They have lent more than $892,387,346 million, financing more than 3,381 SMBs through 38,574 loans. Cumplo is currently operating in Mexico and Chile.

• Konfio

Konfío is the largest online lending platform for Small and Medium Businesses in Mexico. They help these companies to achieve economic growth through access of credit solutions with a proprietary algorithm that combines data and technology to measure creditworthiness in a matter of minutes.

ALSO READ: Global Lending Vendors & Landscape Report Q2 2022