According to the Emergency Decree No. 013-2020 issued yesterday by the Peruvian Government, all micro, small and medium enterprises (MSMEs)and startups will access financing to expand their business and improve their production. This will be given through factoring, which is the change of bills receivable in exchange for credits. These bills will be reduced to a term of 8 days, facilitating the negotiation, registration, and publication between the supplier and the client. The proposed norm also establishes measures to sanction the abuse of dominion power within factoring operations.
Other measures that will favor financing are leasing, purchase orders, crowdfunding and the found «Fondo Crecer». It is estimated that there would be an impact on the increase in negotiations between 900 million and 2,400 million soles. There are currently 2 ‘211,981 formal MSMEs, but only 5.7% can access formal financing. This happens because the rates are very high; usually, financing for microenterprises has a financial cost of up to 60%, while small ones assume a cost of 30%.
Fondo Crecer
One of the most effective measures will be the use of the found «Fondo Crecer». This is developed in two fields of action: credit lines and guarantees. Its main objectives are to contribute to the reduction of the interest rate that applies to micro and small businesses (MSMEs) and to facilitate access to financing. The general director of the Directorate of Financial and Private Pension Markets of the Ministry of Economy and Finance (MEF), Oscar Graham, announced that the list of intermediaries who use and receive the resources will be expanded to accelerate the placement of the fund. Also, credit unions will be integrated. Companies that offer sustainable projects are also eligible to access these financing.