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The alternative of Electronic Credit Invoices to the failure of deferred payment Checks

The alternative of Electronic Credit Invoices to the failure of deferred payment Checks

The FCE has been very well received as a financing instrument in the MSME supplier sector of inputs and services to the giant national and international oil and gas producers.

In the Argentina we have a non-financial private sector credit ratio over GDP of 6.7% According to a BCRA report, below the region’s neighbors. It is possible that this refers to founding or “refounding” moments of the country.

According to this document: “the acceleration of inflation “It is a relevant explanatory factor in the sustained decline…”. That is to say, in times of high inflation the short term is privileged, money burns in your hands and you have to be “covering” yourself from its harmful effects permanently.

If we compare this coefficient with other countries in the region, we see that in Uruguay is the same 26.4%, Mexico 34.3%, Colombia is 44.2%, Brazil 71.8% and Chile 112.8%. In Argentina in the 90s, when our country was growing (despite multiple external shocks) at an average annual rate of 6 or 7%, credit to the non-financial private sector reached a coefficient of 25% of GDP.

The Deferred Payment Check does not provide answers

According to the BCRA, It is estimated that of the 6.7% of GDP, half corresponds to credit to MSMEs. It is evident, then, that the policies designed have not worked, not even at the instrument level. That is to say, the deferred payment check (today echeq, with a validity of almost 30 years in Argentina) as a facilitator of financing for micro, small and medium-sized businesses, has also failed to meet its objective.

Since the enactment of Law 27440 on Productive Financing, regulated during 2019, the Electronic Credit Invoice (FCE) like a financing alternative for this sectorwhere the main advantage is that The MSME does not guarantee its payment, but the credit risk is based on the payment capacity of the large receiving company.. That is to say, The operations are “without recourse” against the MSMEs, not affecting their borrowing capacity in the system.as occurs with the discount of an echeq when it is endorsed to the financial entity.

The FCE has had a very good reception as a financing instrument in the supplier sector MSMEs of inputs and services to the giant national and international producers of the Petroleum and gas (it is estimated that 11% of MSMEs stations). It is the sector with the greatest possibilities for growth and multiplier of activities currently in our country.

According to our estimates, in March 5.7 trillion pesos of FCE were issued, corresponding to some 180 thousand MSMEs, of which 90 thousand are legal entities.

Currently, approximately 20 billion pesos are discounted on MSME financing platforms, financial entities and the capital market. That is, less than 1% of what was issued. Very low.

Time to rethink strategy

So, adIn addition to recovering macroeconomic stability, to facilitate credit to the private sector and MSMEs in particular, it is necessary that what did not give results, such as the CPD or “echeq”, be replaced or, at least, strongly complemented with superior instruments such as the Electronic Credit Invoicealways linked to commercial operations between buyers and sellers.

For this to happen, it is necessary, among other initiatives, for large FCE recipients to visualize and understand the advantages of FCE for them and their value chain. The instrument is there and has already more than proven its contribution to the dynamism of the MSME economy.

Source: Ambito

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