Monterey, NL. fintech eFactor Networkwhich operates in the electronic factoring marketsigned a strategic alliance with Trusts Instituted in Relation to Agriculture (FIRA), to streamline financing for the agricultural sector, through financial factoring. Initially, it is expected that 200 tractor companies will participate, which could support around 4,000 companies that are their suppliers.
The estimated amount of financing to which suppliers will have access is 1,000 million pesos in three months, and could reach up to 3,000 million pesos in a year.
“The objective of this alliance is to formalize the relationship to go out and promote the factoring of the supply chain of the agricultural, livestock, fishing sector, everything that is agriculture, livestock, in populations with less than 50,000 inhabitants, such as the municipality of García ”, indicated Víctor Manuel de la Cruz de los Santos, executive director of Financial Intermediaries in eFactor Network.
He explained that the fintech will provide the technology to create a platform and FIRA It will fund the operations through the network of financial and non-banking intermediaries, which will represent an important spillover for the companies in the sector.
The Monterrey company is the provider of technological services that will make factoring operations flow, “in addition to being a technological alliance, it is a commercial alliance because we are going to go to the market together,” said De la Cruz de los Santos.
For his part, Héctor de la Garza, director of eFactor Network said that the alliance will allow them to grow in international factoring with companies from the agricultural sector.
It is worth mentioning that in September 2021, Héctor de la Garza commented to The Economist that fintech expected to close the year with a placement of 5,000 million dollars in factoring volume, which represents 30% more than in 2020.
The objective for this year is to place 10,000 million dollars in financing to a greater number of suppliers. Last year they supported the supply chain of 15,000 suppliers from 150 corporations.
Héctor de la Garza stressed that eFactor Network It has alliances with development banks such as the IFC, a member of the World Bank Group; the Inter-American Development Bank (IDB) Invest, Bancomext and PrimeRevenue; They have more than 15,000 clients and a presence in more than 21 countries where they pay company suppliers in various currencies.
alliance scopes
The intention of signing this agreement is to give certainty to eFactor Network Already FIRA to carry out the process of connecting technological systems, and although they still do not have an operational start-up date, tentatively it would be this year, said Jesús Alan Elizondo Flores, general director of FIRA.
The number of tractor companies that could participate initially is 200, which could support around 4,000 companies that are their suppliers.
He stressed that with this alliance FIRA extends its financial services to small, medium and large producers, for the purchase of machinery and inputs for working capital and factoring.
With this alliance, the suppliers of the meat, egg, milk, corn, coffee, and honey chains will be able to migrate to the FIRA portfolio. The Trust currently has 82 tractor companies that it has already structured.
Last Thursday, April 28, they signed this strategic alliance, Héctor de la Garza Ramos, director of eFactor Network and Jesús Alan Elizondo Flores, CEO of FIRA.
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