Small and Medium Enterprises Financing: How has the Monetary Fund, Promissory Note and Electronic Credit Invoice Evolved in 2022?

Some of the most relevant advantages of obtaining capital market financing for SMEs are, in the first place, making sure that it transparent alternative As the market in which SME financing instruments are traded publishes rates in each term every day, and according to each type of instrument, the BYMA report is highlighted.

It is a competitive financing rate because the tools are discounted in the market in auction mode, which is Ensures priority of price and time for purchase orders, Best price guarantee for SMEs with absolute transparency.

On the other hand, small and medium businesses have tips to be able to operate in the market by contacting a ALYC or broker It provides all the support so that the funding adapts to the needs of the entrepreneur.

Last but not least, the advantage is that they are 100% online operations. digital tools such as Echeq, electronic bill of exchange and electronic credit bill, It allows SMEs to obtain capital market financing from anywhere in the country in a flexible and secure manner, eliminating operating and management costs.

All of these tools are available on the EPYME online platform of Caja de Valores, the depository entity of the BYMA Group. Entry is free and SMEs can finance themselves in the capital market with a simple click. Developed using blockchain technology it is the link that allows you to enter Echeqs from the bank to your ALYC, and create digital promissory notes to also negotiate through your ALYC.

Ichiks

The most used tool is Echeq, An electronic check that can be your own, or received in part as payment by a customer, which has grown exponentially in the amounts in the custody of Caja de Valores since January 2022. Discounting checks is the dominant tool for SME financing in the market. The term of a check can be up to 360 days.

In July 2022, the maximum peak was found regarding the amount deposited since the launch of the tool, which amounted to $36,314,444,516, but not so in the amount that occurred in June 2021. In March, the amount deposited increased by 47.87. And in June, 27.26%. If we compare the months of January and July, the income in the first month of the year and the peak, the growth was 87%.

promissory notes

A digital promissory note is also a used instrument, albeit to a lesser degree than Echeq. However, this past year has been reflective of significant growth compared to the same period in the previous year. The term can be up to 3 years, which allows for long-term financing. The advantage that this tool provides is that it can be issued in pesos and dollars (the latter, payable in pesos at the exchange rate specified at the time of issue).

There was tremendous growth in July 2022, but growth in quantity was seen from February of the same year. In July 2022, the maximum amount and the amount reached the peak income, since the launch of the tool. Comparing January and July, what was entered in the first month of the year and the peak, the growth was 271%. The comparison is always with respect to the previous month, where the growth is very exponential.

electronic credit invoice

Electronic Credit Invoice started a little over a year ago and it targets large corporate suppliers who can finance themselves with the same bills, Without the need for an additional tool. It is a short-term financing, usually 45 days.

FCE has seen significant growth in recent months and some of the reasons are as follows: FCE has a more accessible cost and cash equivalent. It is useful because it allows small and medium businesses to convert it to cash simply and online, without having to wait for payment terms for their large customers.

How it works? According to the AFIP statement, SMEs must issue an electronic credit invoice to a large corporation. The recipient will have 25 days to reject, note or accept: once accepted, it becomes an actionable document, i.e. deductible as it happens with a check, in banks, finance companies, trading platforms and stock market, in a simple, fast and online manner.

In addition, it is negotiable and identifies the source. For example, if the person who bought this document (in general, institutional investors) fails to collect it after the specified date, they can only claim against the payer, i.e. the client company initially issued by the supplier.

At the beginning of 2022 there was a decrease in the amount deposited in relation to the last month of the previous year. As of May, there has been exponential growth both in terms of volume and quantity. In this past month, it was possible to see the maximum peak income in terms of quantity and quantity, since the launch of the tool. Comparing January and July, what was entered in the first month of the year and the peak, the growth was 169%.

Each of these tools collaborates with different needs and turns out to be most effective depending on the scenario. The definition of the most useful tool will depend on the need of the entrepreneur or small and medium-sized enterprise: the amount required, the term of financing (in general, the higher the amount funded, the greater the need for the long-term), rates, among other factors.