The factoring market factoring -or advance payment of invoices - in Peru has shown remarkable growth (+25%) in the last year, driven by a context of greater need for liquidity in companies and the strengthening of the legal framework.

This financial instrument allows companies to raise capital quickly by selling their accounts receivable to a financial institution or factoring company. factoring companyIt is especially useful for small and medium-sized enterprises (SMEs), which usually face higher costs in accessing bank financing.

Legal context and regulation

In 2015, the Peruvian government enacted Law No. 30,308, which regulates the negotiable invoice, promoting the use of this document as a security and facilitating its trading in the secondary market.

This regulatory framework, which responds to the review of the National Superintendency of Customs and Tax Administration (SUNAT) and the Superintendency of Banking, Insurance and AFP (SBS), has been a key driver for the expansion of this market. According to SUNAT data, the number of negotiable invoices registered has grown exponentially in the last three years, demonstrating the growing interest and acceptance of this mechanism.

Advantages for companies and investors

The factoring has proven to be an effective tool for improving companies' cash flow, reducing dependence on bank credit and mitigating the risk of non-payment. Companies can convert their credit sales into cash almost immediately, allowing them to take advantage of investment and growth opportunities without compromising their ability to pay.

It also contributes to improving the credit risk profile of the companies by not generating debt on their balance sheet. On the other hand, investors -who provide liquidity to these SMEs- obtain attractive returns in the very short term.

Future prospects

The factoring market factoring market market in Peru has a positive outlook, especially with the digitalization of the electronic invoicing process and the implementation of new technologies for invoice management.

In the short term, it is expected that more companies -including microenterprises- will adopt this tool to improve their working capital. Likewise, the support of institutions such as CAVALI and the regulatory backing of entities such as the SBS and SUNAT reinforce the security of the system and provide stability to the growth of this sector.

In conclusion, factoring factoring has established itself as an attractive and expanding alternative in the Peruvian market, contributing to the development of SMEs, offering companies a quick financing option and investors a competitive alternative to diversify their assets in a context of internationally low rates..

Guillermo Valdivia

Commercial Director Fynsa Peru