This model advances hand in hand with the implementation of electronic invoicing. It is also an investment opportunity for individuals through crowd funding platforms. Perhaps you have experienced the complicated situation of accepting some payments from their customer’s longer terms to 30 days. It is most common, when they pass handled large customers, their accounting closures do not always match the cash flows of small and medium businesses. Many bills run the possibility of being paid in periods for business owners sometimes become a bottleneck.
Indeed, by 2018 Colombia should be migrated completely to the electronic invoice process that should be completed in January 2019. One of the advantages it brings the development of this mechanism is that any business can access the factoring, where the establishment receive money. Instantly, in exchange for accepting a discount on the bill, while a third is responsible for collecting the payer of the bill in the stipulated period.
This allows supermarkets, businesses that provide their goods and services, platforms. Investors factoring individuals, participate in economic growth. Believes that this alternative will grow hand in hand with crowd funding, a mechanism which brings together a number of investors to purchase invoice discount, waiting for a return.
In the past two years, factoring has had a very promising development for the economy in Colombia. Approximately 90% of businesses in the country are SMEs and MSMEs, which account for about 1,640,000 companies that can access the benefits of factoring. This mechanism also serves anyone, the annuitant or the annuitant. Anyone with an amount intended for investment can be connected to the emitters.
However, there are still challenges for the country and for banking in the way of achieving a dynamic line with potential. The barriers come from the absence of centralized and, more importantly, regulations for the circulation of electronic invoicing information systems, legal asymmetries with competitors of the real sector, still undeveloped fullness “indicates the entity.
As investment model
Given the need for resources and the interest of investor’s access to alternative mechanisms to put resources, they have developed technology platforms that operate based on factoring. This model has yielded results because it delivers a yield of approximately 17% annual effective, although the deadlines for this investment are usually up to 120 days. It is a market that is open, only now in the country and is an investment that has no close rival.
To William Shelton, president of Bank Multi bank, factoring brings opportunities for Colombian SMEs, although around the subject tissue have different myths, and the challenge is to provide financial education for companies to take advantage of this advantage model.