Oikocredit strengthens commitment to Mexican SMEs with loan of €1.07 million to Procap

Amersfoort, the Netherlands – Social impact investor and worldwide cooperative Oikocredit has provided a term loan of MXN 20 million (€ 1.07 million) to Compañía de Servicios El Ángel SAPI de CV Sofom ENR (Procap), headquartered in Tijuana, Baja California, Mexico. With this loan, set to mature in November 2027, Oikocredit is increasing its support to Mexico’s small and medium enterprises (SMEs) to foster job creation and sustainable economic progress.

The border state of Baja California has a rapidly growing SME sector and is poised for remarkable growth, with numerous multinational manufacturing plants. Oikocredit’s loan will be used to support the growth of local enterprises and will provide a crucial financial lifeline to SME clients, advancing the objectives of the UN’s Sustainable Development Goal 8.

Procap’s distinctive factoring product is a cornerstone of its financial offerings. It will provide essential liquidity to SMEs, specifically for employee payroll needs. Factoring can be critical to helping SMEs stay in business. It is a financial transaction where businesses sell their accounts receivable to a third party at a discounted rate in return for immediate liquidity.

With this strategic approach, Procap plays a significant role in bridging the financial inclusion gap and helps ensure that businesses on the margins have access to crucial financial services.

Esteban Soto Healy, Director General of Procap, said, “At Procap, we are thrilled to partner with Oikocredit in our shared commitment to empower small and medium businesses with the financial resources they need to flourish. This partnership is a significant step forward in our mission to fuel the growth of enterprises that drive local economies, and marks the beginning of a long-term relationship that will impact numerous businesses across Mexico in the years to come.”

Fernando Gonzalez, Investment Officer at Oikocredit, emphasised the synergies between the two institutions: “Procap's strategic approach to supporting SMEs is well aligned with Oikocredit's mission and goals. This new funding represents our aim to grow alongside partners such as Procap as we look to continue supporting the valuable SME sector in Mexico and beyond. This new partnership will enable Oikocredit to continue creating social impact and fulfilling its commitment to the communities we serve.”

SMEs make a significant contribution to the Mexican economy, and account for 71% of employment, according to the OECD. 

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.

Oikocredit finances more than 500 partners, with total assets of € 1,141.9million (at 30 September 2023). For more information, visit www.oikocredit.coop.

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Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org.