Financing Improves a Community’s Quality of Life: Atrato

Q: What sets Atrato apart from other credit and financing providers in Mexico, especially considering the recent boom in the market?

A: We serve a different audience compared to most of our competitors, which primarily focus on online sales. Between 85% and 90% of our transactions happen offline, directly in-store. We finance durable goods or services that improve the quality of life for people, focusing on items with an average cost above MX$14,000 (US$700), such as refrigerators, mattresses, or motorcycles. Many competitors offer payment plans between three and six pay periods, while we offer financing for between three and 24 months to actually solve the real issue of liquidity. We finance products between MX$1,000 and MX$200,000, and our priority is to make products accessible rather than offering short term payment plans.

Q: What are the key benefits for merchants when they choose Atrato as a payment method?

A: We help businesses reach customers who otherwise would not be able to afford their products. Many times, these businesses are competing with legacy stores that offer financing options and they were losing market share because they could not provide credit options themselves. Some even tried offering credit, but it is a complex process. It is not just about giving out credit; one needs to know who will actually pay, what kind of customers are trustworthy, and how to avoid fraud. Many businesses got into trouble trying to manage this on their own.

Atrato helps them avoid this risk. We handle the credit approval process, and the business gets paid immediately. This benefits the business because it can grow, and sellers can start earning commissions.

A: What benefits does the final user gain from using Atrato’s financing?

Q: We keep our credit offer simple. Unlike credit cards, where the minimum payment can be misleading, our customers know exactly how much they will pay each month. This helps them avoid confusions and surprises down the line while building their credit history. Customers can shop at different stores, compare products, and choose the one that best suits their needs.

Q: How does Atrato help businesses mitigate fraud and credit risks?

A: For businesses, the risk is zero. Once we approve a customer, the business knows they will be paid. Atrato follows three main steps to manage fraud and credit risk. First, we use data-driven models trained by the loans we have already issued to analyze user behavior and generate insights. This allows us to statistically predict who is likely to pay. Second, we focus on geographic and demographic patterns. Urban areas are different from rural regions, so our risk thresholds vary accordingly. We have developed tools that help our teams make adjustments and implement decisions quickly. 

Finally, we offer different credit products based on the customer’s risk profile. If a customer has a strong profile, verified by their ID and a good credit history, we can offer them a cheaper credit product. This helps reduce costs for us and improves their credit history.

Q: What characteristics does Atrato take into consideration when making credit decisions?

A: We take into account the customer's income, expenses, and credit history. Sometimes we even consider geographical data, such as regions in the country where economic activity may be slower. Demographic data also helps us determine whether a credit offer makes sense for each particular customer. The type of product being purchased can influence the decision as well. For example, the amount financed to purchase a motorcycle might be higher than the average loan, and the payment period longer. Since customers often use the vehicle for work, it is easier to justify a larger loan. 

Q: Aside from construction and healthcare, in which sectors are Atrato's financing services more commonly used?

A: Mobility is a significant sector for us. Many customers use motorcycles for work, particularly on delivery platforms. Furniture and white goods, like home appliances, are also popular. Atrato is a good fit for any business offering products or services that are priced above MX$6,000.

Q: What changes in the demand for credit does Atrato expect for the next few years?

A: Demand is unlikely to change much in the coming years. However, if Mexico’s overall economy contracts, we might start to see issues in credit portfolios, with an increase in defaults or fraud. In that case, it would be crucial to adjust credit models in accordance with the evolving economic environment.

Atrato conducts a macro and microeconomic review of Mexico and global markets once a month to determine if our risk models or operations need to be adjusted. 

Q: What financial education initiatives is Atrato taking to protect consumers from accumulating excessive debt?

A: This is a key issue for us because part of our model focuses on payment capacity. We work hard to accurately calculate the amount of credit a person can handle. Atrato wants customers to make regular payments without worrying about unexpected interest. Knowing exactly how much they owe each month helps them manage their credit responsibly. We also monitor when someone has taken on too much credit, and deny them additional loans to avoid over-indebtedness. It is not beneficial for anyone to issue more credit than a person can repay.

Q: What goals or milestones does Atrato plan to hit by the end of 2024? What strategies have been implemented to achieve them?

A: Our immediate goal is to reach MX$2 billion in loans issued, and we are close to achieving that objective. Beyond that, our focus is on developing products that continue to support commerce. There is a great deal we can do to help merchants, such as provide them financial advice to improve sales. By helping businesses grow, we also contribute to improving the quality of life in their communities. Outside of urban areas, when a business starts thriving, the quality of life for everyone around it improves as well; there is more employment, more sales, and increased consumption, which ultimately benefits the entire region.


Atrato is a point of sale lending company which allows merchants to offer their products and services in monthly or biweekly installments.