Fondimex Team from left to right: Raul Lobato (Product Owner), Galo Borrego (CEO), and Francisco Reséndiz (CFO)
Fondimex addresses a huge problem in Latin America. Specifically, the lack of short-term capital options for small and medium-sized businesses. Known as PYMEs in Mexico, small businesses depend on quick payment of their services rendered to continue operations. But invoice payment can take anywhere from 30-120 days. As a result, PYMEs struggle to operate while they await payment.
That’s where Fondimex comes in. The startup offers an online platform for invoice factoring (“factoraje financiero” in Spanish). Simply stated, invoice factoring is a tool for businesses to fund cash flow by selling their invoices to a third party at a discount. Within this model, everybody wins:
– Suppliers (small business) get access to the capital they need to grow their business
– Investors get a great rate of return backed by the large, stable buyers
– Buyers (small business customers) get a more-productive and happy supply chain
The market potential for invoice factoring is huge. The estimated market size for invoice factoring is over $30B+ USD in Mexico alone.
Founder & CEO, Galo Borrego
, wants to provide Mexican entrepreneurs with more financing options. He believes that invoice factoring will transform the Mexican economy.
“Invoice factoring is the perfect instrument to help the growth of the Mexican economy. PYMEs make up more than 50% of the total GDP. They also hold 70% of Mexican jobs. That’s why Fondimex wants to provide a secure, short-term opportunity to invest in the working capital of AAA companies.”
Here at Agave Lab, we’re very proud of them and excited to have helped them get their start.