The BCRA Boosts MSME Electronic Credit Invoices

Micro, small- and medium-sized enterprises (MSMEs) will be able to manage credit invoices directly on financial institutions’ portals and apps, similarly to electronic checks. Thus, the BCRA seeks to boost the use of electronic credit invoices as a genuine source of financing for MSMEs.

The project was devised by the BCRA and supported by the Secretariat of Small- and Medium-Sized Enterprises and Entrepreneurs (Resolution No. 103/2020 issued by the Ministry of Productive Development, published today in the Official Gazette).

The newly launched scheme will run on the platforms of financial institutions, which will have to promptly adjust their systems so that MSME electronic credit invoices can be managed similarly to electronic checks.

Each electronic credit invoice will be available through online banking immediately upon acceptance so that the company may discount it at banks, insurance companies or investment funds; forward it for negotiation in markets regulated by the National Securities Commission; or present it for collection upon due date.

In practice, MSME electronic credit invoices will have the features and dynamism of electronic checks (which already share 30% in the total). Thus, MSMEs will have at reach a practical and genuine instrument of financing.

The experience gained with the ECHEQ platform, which is well developed after running for 18 months, serves as the foundation for this new system for electronic credit invoices, 1% of which is negotiated nowadays.

Currently, around 138,000 MSMEs issue more than ARS 200 billion worth of electronic invoices, with payment risk of 1,500 large companies. This means that a significant amount of financial assets is likely to be managed by the capital market and the financial market, as is the case in almost all countries in the region and in the developed world.

October 15, 2020.

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