Rapid Growth of Factoring in Costa Rica

The 18 companies that make up the country's Factoring Chamber now manage a $177 million portfolio, double the level recorded in 2009.

Monday, April 11, 2011

The largest growth is in the small and medium-sized enterprise (SME) sector, which has increased its supply of services to Costa Rica's government and transnational companies.

"Telecommunications, construction (of bridges, highways and hospitals) and other private investment in the area of health services, are the sectors that have helped the factoring business in 2010 and are expected to continue to do so during 2011," reports Gabriela Mayorga for Elfinancierocr.com.

Factoring is the selling of an invoice or other credit document to a factoring company in exchange for all or part of the expected earnings.



More on this topic

Factoring in Costa Rica

March 2017

At the close of 2016, there were 24 companies dedicated to providing factoring services, with a portfolio of $243 million, 6% below the balance of 2014 but 2% higher than the amount recorded in 2015.

The companies with the most experience in the business of factoring or invoice discounting in the country pointed to an increase in the presence of individuals or small private companies that provide the same service but with fewer requirements and a higher level of risk, which has affected the overall performance of the sector. Among the companies affiliated with the Costa Rican Chamber of factoring companies are banks, financial institutions and companies dedicated exclusively to the service of factoring.

Factoring in Costa Rica Growing and Growing

July 2012

Getting cash by discounting accounts receivable is a form of credit which has increased by 160% in the past two years.

In April 2011 the 18 companies grouped under the Costa Rican Chamber of Factoring Companies managed a portfolio of $177 million, which is double the amount recorded in 2009. In June 2012, the business of factoring in Costa Rica amounted to about $220 million.

Nicaragua: $2 Million SME Factoring Project

August 2010

Through an agreement with the IDB's Multilateral Investment Fund (Fomin), the company Credifactor will offer factoring (selling invoices at a discount) services to small and medium sized enterprises.

The total cost of the project is approximately two million dollars, which will enable Credifactor to develop its capabilities, carry out training and expand its services across Nicaragua.

Factoring in Panama

January 2010

The factoring industry in Panama (selling invoices at a discount) has grown to $100 million a year.

When the time lapse between credit sale and collection is longer than what the creditor can usually afford, factoring becomes a good option to have cash at hand to sustain day-to-day operations.

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