Currently, we are facing times of social, economic and political instability that affect all areas and have strong consequences for the Peruvian economy. According to him Peruvian Institute of Economics (IPE)it is estimated that growth for 2023 will be 2.1%, much lower than what was projected by the Ministry of Economy and Finance. This situation has alerted the investors and it has been affecting micro, small and medium-sized companies.
Consequences of the current socio-political situation
According to Macarena Irigoyen, a commercial executive at Rextie Factoring, the sectors linked to mining, agricultural exports, tourism and transport are key items that have affected their chain of payments due to strikes and roadblocks. “All this situation has made the financing conditions for suppliers that work with these sectors have hardened and are more rigorous, since the increase in delinquency and the possibility of non-payment are much higher”added the executive.
For Irigoyen, banking and financial entities are evaluating companies more carefully and exhaustively before offering credits and loans. In addition, they would be considering the rate hike due to credit risk.
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Is it safe to invest in factoring in this context?
It is known that factoring is an instrument that helps the reactivation of many companies, since it helps to reduce the gap in access to financing that micro, small and medium-sized companies seek through their invoices. But is it a safe alternative for investors in this context?
The Rector Factoring executive offers some advantages of investing in factoring:
- Cost effectiveness: It allows obtaining an approximate benefit of 12% to 16% per year.
- short term investment: invoices are usually paid within a period between 45 and 120 days maximum.
- Investment diversification: You can choose to partially or totally finance the total amount contained in an invoice. You can also choose the sector where you want to invest.
Finally, Irigoyen mentions that investors prefer to invest in the areas that they consider to be more stable, such as retail, manufacturing, technology and commerce.
