Trifecta 2024: Polls, Payments, and Pesos

The end of the year is usually a stressful time for businesses, but 2024 looks to be more complicated than most. Businesses across North America are bracing for an unprecedented trifecta of political transitions with a new president-elect in Mexico, elections in the United States, and resulting currency volatility. For businesses in Mexico, successfully navigating these challenges can be achieved through careful strategic planning and the use of appropriate digital financial solutions.

Let’s examine what makes year-end financials so challenging, and what is different this year. Traditional Q3 and Q4 challenges include forecasting demand, placing orders, managing production, and planning cash flow requirements. In 2024, these are compounded by the trifecta mentioned above. Managing payments in this context is critical, especially for those involved in any kind of cross-border trade, whether it be for supplies or finished goods.

While it is virtually impossible to predict what the next few months will bring, businesses can hardly stop and wait it out. We must all continue to operate, procure supplies and goods, and take advantage of the demand for our products and services.

A significant percentage of companies in Mexico engage in some form of foreign trade, especially in the second half of the year, making advance payments a major concern at this time. Any company that relies on imports may find it difficult to maintain a healthy level of cash on hand while purchasing goods. This can lead to financial stress in the best of times, which is exacerbated by the current situation.

We believe that one of the best things a company can do toward the end of 2024 and into 2025 is to minimize the spread between outgoing payments and incoming collections to create a buffer against instability.

So how do we get there? The solution is clear: Businesses in Mexico need to look to third-party financial tools that go beyond merely conducting international transactions. The situation calls for financial tools that also reduce currency risk and ensure healthy cash flow.

In this context, there is an efficient financial solution that allows you to defer payments to international suppliers. With Xepelin’s International Payments solution, you can navigate through these uncertain times with greater confidence, knowing that you have effectively reduced the spread between payment and receipt of funds, thereby protecting your cash flow. Simply put, you can better align payments with income flow. 

Xepelin’s solution allows companies to make payments to suppliers in the United States or any global market, with financing options of up to 120 days for foreign currency transactions. This service is provided entirely through a digital platform, ensuring approval within 24 hours and same-day payments to suppliers.

Xepelin's key differentiator is our commitment to technological innovation. Leveraging advanced financial technology, our platform enables a fully digital interface, with approvals granted in minutes and funds made available in as little as 24 hours. This is in stark contrast to traditional Mexican financial institutions, which often take weeks to process and disburse funds.

Xepelin offers a range of products, financial instruments, and free resources that enable companies to effectively manage their finances and make informed decisions. The power of technology in finance cannot be overstated and this is at the core of our products.

As I have mentioned many times before, Xepelin was built on understanding the need for financial empowerment among Latin American businesses. We are committed to leveraging technology to meet this need, and act as the CFO for companies across the region.

About Sebastián Kreis

Sebastián Kreis is the co-founder and CEO of Xepelin, a startup that aims to be the leading B2B fintech in Latin America. A Chilean entrepreneur with more than 10 years of experience in the world of technology and finance, he is an active promoter of a digital financial ecosystem for all types of businesses. Born in Santiago de Chile, he graduated with honors in Civil and Industrial Engineering from the Catholic University of Chile and holds an MBA from U.C. Berkeley.

In his professional career, as VP of Corporate Finance at IM Trust, he led capital markets and M&A transactions for more than $10 billion.

Inspired by a trip to San Francisco in 2014, where he had the opportunity to visit startups that were just emerging, such as Uber, he decided to venture into the digital world and took his first steps in the fintech sector. His first startup was Safecard and later led the digital transformation of some banks in Latam with Boston Consulting Group.

Inspired by his family's entrepreneurial background, Sebastian founded Xepelin in early 2019 with a clear mission: to relentlessly expand digital financial services access to over 1 million B2B companies in Latin America.

About Xepelin

Xepelin is a fintech company with the vision to become the digital CFO for companies in Latin America. Founded in 2019, Xepelin was born with the mission to solve the financial pains faced by small and medium-sized businesses in the region, allowing them to focus on what they do best: run their businesses. In 2020, in the midst of the Covid-19 pandemic, they began operations in Mexico, establishing themselves as one of the fastest-growing B2B fintechs in Latin America.

Today, the company provides an all-in-one platform that helps entrepreneurs and operators organize and understand their financial information, manage payments, and finance their working capital needs.

Xepelin and its more than 500 team members are backed by Kaszek, Avenir, DST Global, Picus Capital, Paypal Ventures, and Wellington among others, and closed a US$111 million Series B round in 2022.