Greater competition and financing problems herald significant changes for Chile's factoring industry, local financial daily El Diario reported.
The reduction in interest rates has allowed the factoring units of banks to offer products, generally considered expensive, at a cheaper price, thereby putting added pressure on those factoring agencies that are not affiliated with a bank.
"Many financial institutions as a policy do not work with factoring agencies that are not affiliated to a bank," Integal manager Marcelo Matus said.
This has put Chile's 20 or so non-affiliated agencies in a difficult situation in terms of financing, Factotal director Juan Enrique Gatica told the paper. Factoring agencies have been forced to issue bonds or seek financing from state-run industrial development organization Corfo.
