A new electronic invoicing regime in Argentina targeting SMEs should spur growth of the local factoring market and benefit the country as a whole.
In terms of turnover to GDP, the factoring market in Argentina is small, at around 0.3%, compared with about 10% in neighboring Chile, the region's electronic invoicing pioneer.
Authorities officially launched the new scheme this month, initially targeting SMEs that supply goods and services to the country's large automotive sector companies.
The move is part of wider efforts to spur growth and development of SMEs, which are key job generators in Argentina and the wider region. It also mirrors similar efforts in countries including Colombia, which has just introduced a mandatory electronic invoicing regime that could impact around 800,000 enterprises there.
