Clara Publishes Study on Financing Challenges for Businesses in Mexico

• Fewer than half of companies in Mexico (46%) request some type of financing.
  
• Commercial banking remains the first financing alternative; technology alternatives are expanding their penetration with simplified processes and more accessible credit.
  

Mexico City, May 24, 2023 - Clara, the technology platform for digital business spend management, published its report Business Financing in Mexico: Uses, Challenges and Its Technological Future, which reveals important data on how Mexican companies seek sources of capitalization to boost their operations, the main challenges they face and how technology is helping to facilitate access to business credit.

Among the factors that have most hindered access to financing, according to what companies reported based on their operations throughout 2021, are high interest rates (85%), excessive requirements and paperwork (53% and 42% respectively), and unfavorable payment terms and conditions (41%). Thus, more than half of companies consider that the number of requirements to obtain a loan has become one of the main barriers.

Ten percent of companies in Mexico did not apply for credit because they considered they did not meet the necessary requirements or because they had already been rejected before. In Mexico, it is estimated that around 12% of companies have had at least one credit application rejected.

Another important finding is the use of partners' own resources to help cover their companies' obligations, which occurs in approximately 20% of Mexican companies of all sizes; this phenomenon is linked to various causes, among the main ones being the lack of credit history, little or no access to credit solutions suited to companies' needs, and the low percentage of use of corporate credit cards linked to a lack of business spend management policies.

The availability of business credit solutions that simplify procedures through technology and offer interest rates tailored to businesses' real needs is key to unlocking the potential of companies in the country. In this context, value propositions from technology products such as Clara's business spend management platform are making a difference by simplifying credit granting processes and facilitating their management through flexible and intuitive digital tools. During the last two years, Clara has contributed to the financial inclusion of more than 10,000 companies in Latin America, of which Mexico represents just over 50%.

“Access to financing tools represents one of the greatest levers for driving economic growth in Latin America. The accessibility factor is making a difference in resource optimization and in the growth and expansion of companies. Contributing to these things happening in the Latin American business ecosystem is what motivates us to continue betting on technological and financial innovation at the service of companies.” said Youmna Harb, Country Manager of Clara in Mexico.