Fintech platforms to boost women’s entrepreneurship in Mexico

In Mexico, out of 1,200.000 registered micro, small and medium enterprises, 340,000 belong to women entrepreneurs. Entrepreneurship has become an icon of empowerment for women; however, sourcing capital invest is one of the main complications in consolidating their business projects.

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Access to financing is key

One of the fundamental pieces of entrepreneurship is access to good financing. The first thought of 42% of women who want to open a business is to approach banking institutions, while the rest consider more informal options such as loans from family members or their own money. Both options can alienate investors by retaining complicated and unclear language, policies and conditions or demanding goals that are difficult to achieve.

After the emergence of the fintech companies, the range of possibilities for solving the development of projects has become wider, adapting better to the characteristics of the current entrepreneur attached to technology and its benefits, helping them to deal with the financial landscape they face.

Mexico’s women entrepreneurs

Mexican women entrepreneurs such as Blanca Estela Gomez, manager of Administration and Finance of Linkx Mexico, dedicated to providing services and technological solutions, and Leticia Gonzalez, in charge of the finance area of Paraffin Promoter and Marketer, a business dedicated to the sale of candles, are two examples of success through a financing platform.

Leading fintech platform in Latin America

Cumplo, is a leading fintech platform in Latin America, dedicated to bringing together companies seeking safe and easy investments with investors willing to support them. Security, confidence, and clarity when acquiring a loan are the characteristics most sought after by the entrepreneurs, premises that have ensured the financing of more than a thousand loans and promoted more than 11 thousand 84 investments equivalent to more than $19 million (MXN 400 million).

Broadly speaking, the financing process through a platform begins with the analysis of the project, once it is approved under a certain rate and term, it is published so that investors can evaluate it and lend money to the company.

Once the goal of the loan is reached, the money is handed over to the entrepreneur and when the entrepreneur finishes paying back the loan, the investor receives what he or she lent plus interest earnings.

Financing platforms – one of the most promising options for businesswomen

According to data from Cumplo, 99 out of every 100 Mexican businesswomen who apply for a loan settle it without delay or setback, which is encouraging for both sides of the business and makes financing platforms one of the most promising options for businesswomen and entrepreneurs.

Financing platforms, whose strategy is to help women entrepreneurs find their ideal credit through technology, transparency, simple language, and simple policies, seem to be gaining ground in the quest to democratize the financial system and displace banks as leaders in the sector.

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(Featured image by Humphrey Muleba via Unsplash)

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