Living in Peru : your everyday companion

Info provided by the
American Chamber of Commerce of Peru (AmCham Peru)

The diverse banks in our country dispose of credits for exporters for pre and post shipments. The first one allows them to finance the work capital required by the industry for the manufacture of an exporting product with a guaranteed market. On the other hand, for lines of post-shipment they receive the money upfront for the accomplished export good, which allows the businessman to dispose of the money before the payment due date or the due credit handled to the importer.

Having said this, Standard Finance Products (SPF) now exist in our country and they have been developed by COFIDE, to allow better access to the credit for the small and minor industries at very competitive interest rates. These Standard Finance Products are also oriented to fund the entire productive process which links together a group of production and handles the work capital requirements as well as the investment in the infrastructure of production. In this manner, in agricultural activities, for instance, this product finances 100% of the work requirements as well as the installation of technical risks.

This product differentiates itself from a traditional credit given by any common bank system due to its evaluation process putting a higher emphasis in the rent ability of the productive process and not in the person’s credit history as it is the procedure in conventional banking standards. This can be explained however, because the Standard Finance Products relies as a guarantee of payment the existence of a committed market in a signed contract of buying and selling.

Also, the exporters and entrepreneurs benefit with an increasing credit offer thanks to the insurance program of credit designed for the exporter (SEPYMEX) which counts with a fund of $US 50 million dollars, where the state through the MEF assigns COFIDE and they offer coverage to the banks in 50% of the value of the financing lines pre-shipment that are given to the export industry with formal buying bills.

Therefore, dear reader, it is totally clear that to initiate in the process of exporting nowadays, you do not require money but industry capacity to deeply analyze the international market and identify a concrete business opportunity. Thanks to the APC with the US and to the aggressive integration process, Peru now counts with more and more facilities to place its products in the whole wide world. They’re more opportunities and less obstacles so take advantage of them.



*Translated by Joceline Frank

Frankly Speaking Inc.