David Arana
CEO
Konfio
/
Startup Contributor

Konfío evolves to boost SME productivity

By David Arana | Tue, 04/20/2021 - 12:56

The pandemic has not been easy, and much less so for Mexican SMEs. Entrepreneurs have invested great effort and dedication to resilience and adaptation to the new normal, a global phenomenon that exacerbates and highlights the underlying problems that, as a sector, we have faced for years: access to credit and financing and adaptation of companies to digital environments.

Let's take a closer look at both topics:

Difficult Access to Credit:

According to the National Survey of Business Financing (ENAFN) of 2018, small and medium-sized companies have a bad perception about requesting financing from traditional financial entities. This survey reveals that 76.3 percent of Mexican companies (corresponding to 81.9 percent of micro businesses; 73.3 percent, small; 57.9 percent, medium; and 64 percent, large) chose not to access any type of credit.

According to ENAFN 2018, lack of credit history and low payment capacity are the main reasons why a banking institution rejects an application; however, the survey also records cases in which reasons for denying credit were not even given.

In contrast, small and medium-sized companies report the number of procedures and requirements, the unclear limits in the contracts and the verification of income as the main reasons for not requesting a loan in banking institutions.

Additionally, the report “¿Quién tiene acceso al crédito en México?” (Who has access to credit in Mexico?) of the National Commission against Discrimination (CONAPRED) indicates that a large part of the population remains excluded from financial services: “Despite all the efforts aimed at strengthening the Mexican financial sector, a large part of the population remains unattended today or underserved, thus limiting the potential of the financial sector.”

Whether due to a factor of discrimination or the accumulation of obstacles, SME entrepreneurs do not see access to credit as easy, possible and viable for their companies.

Adapting to Digital Companies:

Although for more than a decade the internet has been recognized as the new space for the development of the economy, the pandemic has been the true accelerator for the integration of companies from traditional channels in the digital world.

Those of us who are part of the digital entrepreneur communities know that their benefits exceed their limitations. Not only are they a direct sales channel or a space to advertise our goods and services, but there is also a wide range of digital tools and instruments that improve productivity, systematization, accounting and almost any area of ​​interest to us.

Despite all the benefits, in Mexico, approximately 70 percent of MSMEs have not made an investment in technological tools of any kind. The reason is that entrepreneurs think that they will not understand the available tools, which require specific equipment or high investment.

Konfío Evolves to Help You:

At Konfío, we know that owning an MSME in Mexico implies great satisfaction. Since 2014, we have been allies of entrepreneurs from at least one trench: access to credit. Since then, we have injected working capital into more than 40,000 companies, generating a positive impact on nearly 280,000 families.

Our company walks with entrepreneurs and over time has sought to strengthen the SME ecosystem through access to tools that reduce access gaps. It is for this reason and in the face of this unprecedented situation that Konfío evolves.

With the aim of accompanying companies in the transition to the new normal, Konfío presents an ecosystem of tools designed to detonate the productivity of the SME sector.

This package takes the best of our experience in digital environments and adapts it to the needs of growing companies, using the Gestionix, pay tools and the Konfío Card and Konfío Credit credit systems.

Let me tell you a little about them:

Gestionix:

Gestionix is ​​an Enterprise Resource Planning (ERP) system. The platform was born and lives in the cloud. It offers financial services, payment tools and business management in the same place.

Being 100 percent Mexican, its operation is governed by the guidelines of the Tax Administration System (SAT) of this country. If you live or operate in Mexico, you will not have to worry about changes to the law, because the system will adapt for you.

Konfío Pay:

Konfío Pay is a B2B tool to manage payments from other companies in an easy, secure and immediate way. Unlike similar options, it is the only tool in the Mexican market that offers credit options to the end user. Konfío Pay users receive their payments immediately, while their clients pay Konfío in monthly installments, created based on an evaluation of their credit behavior.

This tool is kind to our entrepreneurs, as it streamlines cash flow and reduces risks, while offering them the option of end-user financing with credit schemes, Konfío's hallmark. It emerged as a response to the voice of our clients who have expressed to us the urgency of having an ally that helps to evaluate, give credit and manage their clients, to expand their sale options and capital recovery.

Konfío Card and Konfío Credit:

The ecosystem is completed by the Konfío Card and Konfío Credit options. The first is a new business credit line for our clients. Konfío entrepreneurs can access their Konfío Card online, conveniently and securely.

We also are relaunching our original project, Crédito Konfío, a star product since 2014 and which has been the beginning of the dream of thousands of SMEs. The adjustments to this product are a reflection of our concern for the resilience of the entrepreneurial ecosystem, always under the slogan of keeping businesses open.

Excited About Change:

There are others say, no! Konfío bets on yes! We want access to credit and digital tools to not be the graves of companies, but their seedbeds.

Now more than ever, we have learned that flexibility and adaptability are key to the survival of MSMEs in Mexico and the world. In an unprecedented environment, our company sees transformation and change as the only avenues for evolution.

As part of the Mexican entrepreneurial ecosystem, we make our experience available to our clients. Our tools offer the possibility of accessing good administration and operational management of businesses in order to make timely decisions, all at a competitive price, which becomes an investment for your future.

At Konfío we are there for you, to grow your company, to organize it, to help you adapt in difficult times.

We change with you; we change for you.

Photo by:   David Arana