We believe that regional policies such as e-invoicing are laying the rails for innovation in Latin America, resulting in an incredibly unique environment to build the future of digital invoice financing for the underserved. As a result of mandating the use of electronic invoicing (e-invoicing), which enables the digital recording and verification of invoices for tax purposes, Latin American regulators are facilitating the emergence of digital solutions within financial services to help resolve the SME finance gap. Through our experience with strategic partners and startups in the sector, we are particularly excited about developments in Latin America, where regulators throughout the region are advancing a progressive financial policy shift unseen elsewhere on the globe. These startups include companies such as Bluevine, Fundbox, Finvoice, and Taulia in both the U.S. There is a global SME credit gap of $1 trillion, and within Latin America there is an estimated gap of $250 billion, with 2 million SMEs reported as unserved or underserved.Īs new financing opportunities emerge to fill this gap, we at Accion Venture Lab and Quona Capital have seen interesting growth in startups innovating within the invoice financing space, more specifically in the well-established and expanding form of SME financing known as factoring. Given the importance and market potential of SMEs, a variety of new fintech players have begun providing much-needed debt capital to a sector excluded from many formal financial services. Around the world, small and medium businesses (SMEs) are the engine of economic growth and employment.
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