The $2 million loan will favor the financial inclusion of businesses that traditionally face problems with access to credit
IDB Lab, the innovation laboratory of the Inter-American Development Bank (IDB), will finance the fintech Prestamype with $2 million to improve access to credit for micro and small enterprises in Peru. The loan will drive the financial inclusion of a spectrum of underserved businesses that, in many cases, lack the credit history or level of formality needed to access financing.
Prestamype offers a financing solution that combines mortgage guarantees with technology to optimize the process. This allows the fintech to lend micro and small businesses more significant amounts than those provided by the market, at lower interest rates than traditional financing and with shorter times for the approval and disbursement of the loan. Its clients, 43% of which are women, are primarily engaged in services, commerce, leasing, manufacturing, and construction and mainly request loans for the purchase of merchandise, raw materials, and machinery or to support the construction or remodeling of their business.
IDB Lab’s loan will allow the Peruvian fintech to increase its supply of financing, strengthen its lending capacity, improve loan conditions, and increase the number of companies that receive a first formal loan. Likewise, it will expand its geographical coverage by beginning to serve small and medium-sized enterprises outside Lima.
“When we put technology at the service of inclusion, we advance the development of our region. Facilitating access to finance for micro and small businesses in Peru by leveraging innovation and entrepreneurship favors the sustainable and inclusive growth we seek at IDB Lab for Latin America and the Caribbean,” said Irene Arias Hofman, CEO of IDB Lab.
About IDB Lab
IDB Lab is the innovation laboratory of the IDB Group, the primary source of financing and knowledge for development, focused on improving lives in Latin America and the Caribbean (LAC). The purpose of IDB Lab is to drive innovation for inclusion in the region, mobilizing financing, knowledge, and connections to co-create solutions capable of transforming the lives of vulnerable populations due to economic, social, or environmental conditions. Since 1993, IDB Lab has approved more than $2 billion in projects developed in 26 LAC countries, including investments in more than 90 venture capital funds. www.bidlab.org
(This press release has been updated on October 3, 2022)