Banks in Mexico Collaborate to Provide Greater Access to Credit for SMEs

“We have worked on different lines with the authorities: with Nacional Financiera (Nafin) with programs so that SMEs have greater access to credit and that they have an opportunity through guarantees,” said Julio Carranza, president of the Association of Banks of Mexico (ABM).

In August, six banks started with this program and five more joined the initiative next September.

The banker explained that this facility will be given in the first year of the business, which is the most risky, and that this guarantee will be reduced to 50% in the second year, and 20% in the third year.

With this program, the country’s bankers seek to support companies so that after the third year, they can be fully banked and growing companies.

“In March of this year, a regulatory facility was authorized by the authority that will allow 17,000 new companies that today do not have credit and it is a pilot test that we are running from 10,000 million pesos to 18 months and we are going to adjust with the authority so that we can expand it to more companies,” said Carranza.

The program was approved in March and started this month. The benefit will be for companies that have sales of less than 109 million pesos and currently there are 11 interested banks.

The banks that will offer this type of financing are BBVA, Mifel, Citibanamex, Scotiabank, Monex, BanBajío, Afirme, Banregio, Santander and there are two more banks that are confirmed, but have not yet signed, Carranza highlighted.