Fynsa
For years, we have seen how technology-based financing companies, or “Fintech” companies have set trends, seeking solutions in different areas of local, regional, and global economies. That is why these companies are currently focusing on certain sectors of the economy that have not yet seen a quick solution and remain dominated by traditional financial institutions, seeking a market share that has so far eluded them but is projected to become a trend in the coming years.
Despite technological advances that have made international payments easier for individuals, business-to-business payments remain a challenge due to a lack of transparency regarding international payment processing times and the fees charged for these types of transfers, which are primarily intended to pay international suppliers.
Fintech companies are working to solve these problems by offering real-time payment solutions at a lower cost. In Chile in 2022, exports totaled 97,491 million dollars (a 3% increase), while imports reached 104,407 million dollars during the same period (a 13% increase).
Globally, sectors such as the food supply chain and food wholesalers ($218,000 million); chemicals ($765,000 million), road transportation and fuel (30,000 million global fleet transactions), among others—despite the high volume of currency transactions—have limited service offerings and, above all, limited financing options, as well as a lack of local or international payment options.
For this reason, vertical fintech companies—such as those offering SaaS (Software as a Service)— will create value by digitizing the transaction layer and optimizing the AR (accounts receivable) / AP (accounts payable) workflow, as well as working capital loans, factoring, and instant deposits. The new generation of vertical financial technology will scale up SMEs through modular offerings and great flexibility for specialized industry workflows.
Of the millions of dollars in short-term financing across various manufacturing and service sectors, less than 30% comes from formal sources, with informal financing still predominating. This is driven by the lack of documentation requirements, acceptable collateral, and longer repayment periods—though it comes at a high financial cost to businesses. Fintech companies have sought to address these challenges through cash flow-based loans and supplier financing, leveraging their creditworthiness assessments—whether by gathering external information, such as consolidating data for credit scoring, or conducting 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 at Fynsa we believe in financing businesses, which is why we maintain our partnership with the fintech company Creditú for the acquisition of real estate assets (collateral), through endorsable mortgage notes and, soon, real estate leasebacks, which help finance SMEs— whether through debt structuring or restructuring, working capital, or other means—enabling them to grow their businesses, all while being backed by an insurance policy issued by AVLA, a credit insurance company.
We invite you to review the investment strategy of our FYNSA Private Fixed-Income Fund II , which invests directly or indirectly in all types of debt securities and private debt instruments backed by collateral and credit insurance policies.
Cristián Rodríguez
Private Debt Manager, Fynsa AGF
