We focus on loans and invoice discounting for SMEs.
2015 In Chile 2018 In Perú 100% CAGR Through RedCapital, SMEs have received around hundred and thirty million dollars, and reduced their financial costs by thirty-seven percent. Our investors receive a eleven percent return per year. Our risk predictor has resulted in our having a 1.1 percent default record As a result, we have been rewarded by several prestigious institutions in Chile and abroad.
In the countries we will focus we estimate a Market of $60B.This is based on loans and factoring to SMEs through financial institutions other than Banks. Those institutions charge Small Businesses much more than Banks. We help them to get better rates in Chile and Perú. Latin America’s high-volume markets include Chile, Mexico, and Brazil.
Investors of redcapital.cl & redcapital.pe: Investors are Individuals, family office or institutional investor (funds). This year, 46% of investments on RedCapital are from institutional investors (funds).
Problem or Opportunity
Small businesses have a little credit line on banks. So, they have higher rates in other financial institutions. SMEs in Latin America struggle to grow because accessing credit continues to be a highly formalized and bureaucratic process. There is an SME credit gap of $250B in Latin America with two million SMEs reported as being un-served or underserved. The average interest rate charged by banks to SMEs is generally higher to countries in Latin America in comparison to other regions such as the U.S.
Solution (product or service)
On the RedCapital Website, SMEs request money, then must be approved by our Scoring and investors can choose the loans or the invoices that they would like to invest in.
other financial institutions
Advantages or differentiators
Our risk predictor allows our investors to have only 1.1% default record (more than 6 months on payment delay). We offer a wide range of financial solutions to SMEs (Loans, Factoring & Leasing). Cost efficient thanks to technology developments. The founders have different knowledge and skills, so we complement each other.
On average we earn 2.1% commission of the loan. Our fee depends on the loan terms. Borrowers pay us between 0.2% to 0.9% and Investors pay us 0.3 % of the loan amount per month.
More than USD$ 151,000,000 on loans or invoice discounting until today. 2019 average monthly growth on revenue: 10.7% 37% on financial cost reduction to SMEs Payment delay: 1.1% more than 6 months. 11,8% average return to investors. Profitable growth: Thanks to technology developments we have been profitable since 2015.
Money will be spent on
1.- Improve our platform to be more efficient in the delivery of online lending, 2.- Start operations in 3 more countries in America. Open new markets and cover costs until they are profitable 3.- Marketing in Chile & Perú (we have very good LTV/CAC ratio)
Offer for investor
Be part of the biggest crowfunding in Latin America Funding Sought: USD 5.000.000 Funding Status: We will Start next round on Sept-2020. Deal Terms: Pre-Money Valuation USD 20.000.000
Regulations: But we have a diversify offer of products and countries.
Incubation/Acceleration programs accomplishment
Seedstars Village Capital Imagen Labs UDD ventures
Won the competition and other awards
We have been rewarded by several prestigious institutions in Chile and abroad. Best Chilean start up according to Seedstars 2017 The only South American in the final of BBVA Open Talent, London 2017 Since 2018, Building Financial Capabilities with ACCION and Metlife Foundation