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Production Minister: Factoring to get started in 20 days

17:21 | Lima, Aug. 18.

Factoring mechanism or sale of invoices by companies will start to operate in 20 days, driven by a private sector national bank, which will favor the reduction of the financing cost, Peru Production Minister Piero Ghezzi announced.

During his opening speech at the Eight APEC SME Summit 2015, Ghezzi recalled that the regulatory framework of this proposal is complete and that this measure will benefit the country’s small and medium-sized enterprises, since it will reduce their financing cost.

Both the regulatory framework and the leading bank are ready to start operating in 20 days, and everything will depend on whether companies send the third copy of their invoices to generate securities.

According to Ghezzi, the new law will enable the third copy of invoices to turn into securities and have legal value.

“This means that once the invoice is received, the bank will know the large company will pay it, given that the supplier company is not the one who owes the money,” he stated.

In the past, Ghezzi recalled, when SMEs sold their products/service to large enterprises, the invoice used to be paid on a time period not exceeding 60-120 days or lower, and when companies sold their invoice to a bank, the discount rate was quite high.

(END) JCC/JJN/RMB

Published: 8/18/2015
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