Fynsa
For years we have seen how technology finance companies or "Fintechs" have set the trend, seeking solutions in different areas of the local, regional and global economies. "Fintech" have set trends, seeking solutions in different areas of local, regional and global economies.. That is why currently these companies have focused on some areas of the economy, which have not had a prompt solution and that are still captured by traditional financing companies, seeking a market share that today has been reluctant, but that are projected as a trend for the coming years.
Despite technological advances that have facilitated international payments to individuals, business-to-business payments continue to be a problem due to the lack of transparency in terms of processing times for international payments, as well as the fees charged for these types of transfers, which mainly seek to pay international suppliers..
Fintech companies are striving to solve these problems by offering payment solutions in real time and at a lower cost. In Chile in 2022, exports amounted to US$97,491 million (up 3%), while imports reached US$104,407 million in the same period (up 13%).
Globally, sectors such as the food supply chain and grocery wholesalers (US$218 billion); chemical materials (US$765 billion), road transport and fuel (US$30 billion of global fleet transactions), among others, despite the high volume of foreign exchange or operations, have a low supply of service and especially financing, as well as no option of local or international payments.
Because of the above, vertical Fintechs such as SaaS (Software as a Service) will capture value by digitizing the transaction layer by optimizing the AR (account receipt) / AP (account payment) flow, working capital lending, factoring and instant deposits. The new generation of vertical financial technology will scale SMEs through modular offerings and high flexibility towards specialized industry workflows.
Of the millions of dollars of short-term financing in various productive and service sectors, less than 30% receive formal sources of financing, with informal financing still being the most prevalent, favored by the lack of documentation requirements, acceptable collateral and a longer amortization or payment period, but with a high financial cost for companies. Fintechs have attempted to address these challenges through flow-based lending, supplier financing, leveraging their creditworthiness assessment, either by collecting external information, such as data consolidation for credit scoring or internal behavioral analysis, this type of analysis has proven to be a scalable and secure approach to credit approval for microenterprises and SMEs*.
That is why in Fynsa we believe in financing companies, so we maintain our alliance with the Fintech Creditú, for the acquisition of real estate assets (guarantees), through endorsable mortgage loans and soon real estate Leaseback, which help in financing SMEs, either as structuring or restructuring of debt, working capital or others, which allow them to grow their business, but also with the support of an insurance policy issued by AVLA, credit insurance company.
We invite you to review the strategy of our FYNSA Renta Fija Fija Privada II Fund . , which invests directly or indirectly in all types of debt securities and private debt instruments with collateral and credit insurance policies.
Cristián Rodríguez
Private Debt Manager Fynsa AGF
