JPMorgan Chase partnered with OmniLatam to lend to small and medium-sized companies that supply large corporations in Latin America.
OmniLatam, which operates in Colombia and Chile and has recently opened an office in Brazil, makes loans using data for credit analysis and is expected to offer lines based on receivables and working capital to suppliers of JPMorgan’s customers in the region, usually branches of multinationals or large corporations.
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“Suppliers will have access to credit lines at a lower cost, at a time when interest rates are rising,” says Ignacio Munoz De Cote, head of payments in Latin America at JPMorgan. The executive noted that the loans should help large companies keep their suppliers financially healthy and even contain pressures on price increases given higher financial costs.
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Filipe Oliveira, an executive at JPMorgan, says that the bank should keep in its balance sheet the total amount of credit granted through the partnership and believes that the financing portfolio for clients’ suppliers should double within three years.
The CEO and co-founder of OmniLatam, Diego Caicedo, said that the company would increase the offer of products, especially those related to accounts payable and receivable, during the partnership with the American bank.