Finkargo secures a US$75M credit facility to enable SMB trade finance in Colombia

November 18, 2022
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Finkargo wants to unlock international trade for LatAm’s SMBs by granting them access to capital to grow their businesses.

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After raising a $7.5 million seed round just 7 months ago, andfinancing more than $50 million in international purchases by SMBs over thelast 14 months, Finkargo announced it has secured a $75 million credit facilityto accelerate the financing of more than 600 SMBs in Colombia over the next 12months.

 

The investment comes from Community Investment Management (CIM),an impact investment fund that provides debt capital to innovative venturesthat seek to contribute to the financial inclusion of entrepreneurs andcitizens in different parts of the world.

 

We are excited to support Finkargo’s responsible placement ofcapital to continue transforming financial inclusion and promoting the growthof SMBs in the region. Finkargo's mission is aligned with our vision ofsupporting technology enabled financial solutions that generate real andscalable impact in underserved sectors,” said Alejandro Arenas, InvestmentPrincipal of CIM.

 

International markets represent overwhelming growth opportunitiesfor companies, but require numerous efforts to do so in a competitive andsustainable manner. One of the barriers that most affects theinternationalization of SMBs is access to financing. Today, 90% of foreign trade transactions requirefinancing, however, more than 50% of SMB trade finance loan applications arerejected. Finkargo is committed to closing the 350 billion trade finance gaplimiting Latin American SMBs competitiveness in international markets. 

 

The versatility of Finkargo's financial product strengthens itsclients' businesses in different ways. Some of the most cited benefits are:obtaining greater bargaining power and better prices from their suppliers;supply and product diversification; agility in capital availability; and use ofguarantees adjusted to the reality of their businesses.

 

These benefits are reflected in impactful results. On average,Finkargo’s clients have increased the value of their operations by 62% YoY, andhave diversified their supply chain, increasing by 27% the number of suppliersthey work with. Today, more than 25% of clients are already enhancing globalvalue chains thanks to Finkargo, increasing their competitiveness by importinginputs and raw materials necessary to produce value-added goods that re-enterthe global market through exports. 

 

If the SMBs we finance manage to accelerate their growth andprofitability, our objective will be fulfilled. We will then be able tocontinue setting investment goals that are not only larger, but also moreinclusive for those companies that still cannot access the international marketdue to lack of capital,” said Santiago Molina, CEO of Finkargo.

 

The extensive knowledge and experience in SMBs financing, foreigntrade and international logistics, allows Finkargo to design specializedfinancial solutions, which incorporate alternative risk analysis and guaranteesadjusted to the reality of companies operating in international markets. Inaddition, digitalization enables agile, transparent and flexible solutions,necessary to participate and survive in the global market.

 

"We are empowering a whole generation of entrepreneurs whoseek to grow in the foreign markets," said Tomás Shuk, CRO ofFinkargo. “In Colombia, we are the only platform designed to finance thepurchase of foreign trade merchandise that provides coverage, flexibility andspeed, allowing payment to international suppliers in less than 48 hours.

 

The economy is cyclical and entrepreneurs comeout stronger from crises when they have the correct tools to take advantage ofmarket opportunities. Bearing in mind a high level of uncertainty in theeconomy, and a restrictive environment in the credit market, the bestalternative for SMBs is to strengthen their planning and monitoring tools usedto participate in global supply and value chains. This will allow them toincrease their negotiation power and react to time sensitive opportunities atkey moments. In this regard, access to agile, flexible and secure financing isessential to continue growing, particularly in the global market.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

After raising a $7.5 million seed round just 7 months ago, andfinancing more than $50 million in international purchases by SMBs over thelast 14 months, Finkargo announced it has secured a $75 million credit facilityto accelerate the financing of more than 600 SMBs in Colombia over the next 12months.

 

The investment comes from Community Investment Management (CIM),an impact investment fund that provides debt capital to innovative venturesthat seek to contribute to the financial inclusion of entrepreneurs andcitizens in different parts of the world.

 

We are excited to support Finkargo’s responsible placement ofcapital to continue transforming financial inclusion and promoting the growthof SMBs in the region. Finkargo's mission is aligned with our vision ofsupporting technology enabled financial solutions that generate real andscalable impact in underserved sectors,” said Alejandro Arenas, InvestmentPrincipal of CIM.

 

International markets represent overwhelming growth opportunitiesfor companies, but require numerous efforts to do so in a competitive andsustainable manner. One of the barriers that most affects theinternationalization of SMBs is access to financing. Today, 90% of foreign trade transactions requirefinancing, however, more than 50% of SMB trade finance loan applications arerejected. Finkargo is committed to closing the 350 billion trade finance gaplimiting Latin American SMBs competitiveness in international markets. 

 

The versatility of Finkargo's financial product strengthens itsclients' businesses in different ways. Some of the most cited benefits are:obtaining greater bargaining power and better prices from their suppliers;supply and product diversification; agility in capital availability; and use ofguarantees adjusted to the reality of their businesses.

 

These benefits are reflected in impactful results. On average,Finkargo’s clients have increased the value of their operations by 62% YoY, andhave diversified their supply chain, increasing by 27% the number of suppliersthey work with. Today, more than 25% of clients are already enhancing globalvalue chains thanks to Finkargo, increasing their competitiveness by importinginputs and raw materials necessary to produce value-added goods that re-enterthe global market through exports. 

 

If the SMBs we finance manage to accelerate their growth andprofitability, our objective will be fulfilled. We will then be able tocontinue setting investment goals that are not only larger, but also moreinclusive for those companies that still cannot access the international marketdue to lack of capital,” said Santiago Molina, CEO of Finkargo.

 

The extensive knowledge and experience in SMBs financing, foreigntrade and international logistics, allows Finkargo to design specializedfinancial solutions, which incorporate alternative risk analysis and guaranteesadjusted to the reality of companies operating in international markets. Inaddition, digitalization enables agile, transparent and flexible solutions,necessary to participate and survive in the global market.

 

"We are empowering a whole generation of entrepreneurs whoseek to grow in the foreign markets," said Tomás Shuk, CRO ofFinkargo. “In Colombia, we are the only platform designed to finance thepurchase of foreign trade merchandise that provides coverage, flexibility andspeed, allowing payment to international suppliers in less than 48 hours.

 

The economy is cyclical and entrepreneurs comeout stronger from crises when they have the correct tools to take advantage ofmarket opportunities. Bearing in mind a high level of uncertainty in theeconomy, and a restrictive environment in the credit market, the bestalternative for SMBs is to strengthen their planning and monitoring tools usedto participate in global supply and value chains. This will allow them toincrease their negotiation power and react to time sensitive opportunities atkey moments. In this regard, access to agile, flexible and secure financing isessential to continue growing, particularly in the global market.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.
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