Promotion of the Factoring Industry

closed

The general objective is to make Costa Rican and, potentially, Central American SMEs more competitive, giving them greater access to financing suited to their characteristics and needs. The specific objectives are to: (i) promote and develop the supply of and demand for factoring as alternative financing for working capital for Costa Rican SMEs; (ii) potentially, deepen the factoring market as alternative financing for working capital for SMEs in two other Central American countries; and (iii) improve access to Central American SMEs' most immediate markets by promoting international factoring. The project's demonstration effect is expected to encourage other financial institutions to serve the main target markets (factoring for small businesses and international factoring services) covered by this operation, while a larger number of SMEs will gain an awareness of this nontraditional financial instrument in Latin America and the Caribbean.