Juan José Lagos, micro-credit expert, explained that machinery, work accessories, accounts receivable and intellectual property could be used as collateral when soliciting credit.

Lagos also said: "The law will ease the guarantee problem for people, as currently creditors only accept real estate, like houses and lots, as collateral".

Source: Tiempo Digital

More on this topic

Nicaragua Approves Secured Transactions Law

October 2016

The law passed by the Legislature allows companies to use their personal property as collateral to take out productive loans.

From a statement issued by the National Assembly of Nicaragua:

During the plenary session on October 5, the National Assembly approved in general the Secured Transactions Law, a legal instrument to promote access to credit for micro, small and medium enterprises by putting up any movable goods used in their daily work as collateral.

Law on Guarantees on Transactions in El Salvador

January 2013

A draft law on Secured Transactions has been presented in the Legislative Assembly, which gives MSMEs greater access to commercial credit.

The Minister of Economy, Armando Flores and the Deputy Minister of Trade and Industry, Francisco Lazo presented today, Monday, January 7, to the President of the Legislative Assembly, Sigfrido Reyes, a draft law on Secured Transactions with which it is intended that the micro , small and medium enterprises (MSMEs) will have greater access to commercial credit through collateral.

Honduras: Personal Guarantee Law

July 2010

The new law will allow lenders to accept personal property as a guarantee for loans.

The head of the Honduran Association of Banking Institutions (AHIBA), María Lidia Solano, told Latribuna.hn that, "movable guarantees are an instrument that can be used to give small and medium sized producers access to credit".

Promotion for Collateral Property Act

April 2009

The Chamber of Commerce is promoting an initiative that it hopes to present to the Assembly and have it approved before the end of the year.

The law would provide access to financing by offering property and rights as payment guarantees.

Elnuevodiario.com.ni published: "The bill also seeks to strengthen trade links between SMEs and the business and micro finance sector."