Factoring companies have increased their business by 8.2% from January to September to Pesos$1,228,287 million (US$1,820 million), according to estimates from the factoring industry association ACHEF.
This increase reflects a wider acceptance of factoring as a financing alternative for SMEs. The leading operator is BSI with 19.48% of the market, followed by Corpbanca 17.78%, Security 16.56%, Banchile 12.55% with the rest of the market shared by others.
Factoring accounted for 3% - 4% of GDP in Chile, which leaves plenty of scope for growth.
Market observers believe Celfin Capital will create a factoring company from the investment fund established for pension funds.
In another development, Factoring Security was thought to be considering the issue of short term bonds to fund its operations.
Source: South American Business Information
