New alternative of cheap credit for SMEs, with a rate of 36%

He low-cost financing It has become one of the greatest needs of companies to get through the pandemic months. In this critical context, Electronic Credit Invoices they become relevant because they offer a very competitive rate.

During the month of June they negotiated $ 45 million in the Electronic Credit Invoice (FCE) market, which shows that the instrument still has a lot of room to grow.

“Despite the advantage presented by this operation, it has not yet managed to consolidate, mainly due to the lack of knowledge of the main market players. However, we see that more and more operations are turned through Electronic Trading Platforms created by law 27440 in its article 13, “explained Alfredo Marseillan, president of the firm Descontá tu Factura S.A.

FCE: how the interest rate evolved

The weighted average rate for FCEs traded in June was 36%, showing a downward trend for the month of analysis and generating a low Leliq spread of 2%.

“The average rate for the month of June is again the lowest since this type of operation began, showing a drop in the weighted average of approximately 500 basis points. In this way, the financing conditions for the entire production line improve: both large companies and their suppliers find a new operation to finance working capital. For their part, investors can access very attractive rates of return based on the risk assumed, “said Guillermo Barbero, partner at First Capital Group.

During this month, 2 FCE in dollars were put in negotiation for a total amount of u $ s154,275. Since the first FCE was negotiated in July 2019, transactions have accumulated for a total of $ 1,635 Million.

What kind of companies take advantage of the FCE

85% of the amount negotiated during the month of June is concentrated in 10 large companies receiving the FCE. The top 5 of large companies reaches 65% of the negotiated amount.

Suppliers of 21 companies accessed the market only in June, according to current regulations, around 1,500 large companies are required to receive the FCE. As mentioned above, ignorance is one of the main factors that limit the takeoff of the operation.

Within the FCE, 54% of the transactions were concentrated in terms of up to 30 days, 38% between 31 and 90 days and the remaining 8%, in terms longer than 90 days.

Since the first FCE was negotiated in July 2019, transactions have accumulated for a total of $ 1,635 Million.

The weighted average term for the month of June was 41 days.. “Here we find other good news, since it has been extended 8 days in relation to the previous month, without a doubt this is the right way to benefit all members of the production chain,” they point out from Discounts your Invoice.

“As we have been proclaiming in DTF, the discount of Electronic Credit Invoices is one of the best solutions in the face of the lack of working capital of the entire value chain, as the supplier companies can sell their credit immediately after the invoice is issued without liability, therefore they do not need to have a bank rating, accessing the best financing rates in the financial system, some of them subsidized or promoted by government authorities, “said Marseillan.

And he added: “In turn, large companies have the opportunity to promote the education and financial inclusion of their suppliers, benefiting from this improvement in costs and terms. For their part, both banks and non-financial credit providers, Cooperatives and Mutuals, can use electronic platforms to buy financial assets with very good performance 100% “online”, concluded Marseillan.

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