The Government announced a credit line for SMEs and large companies dedicated to softwareand computer services (SSI) that contemplates investment advances for hiring employees and purchasing equipment; company acquisition; exports; and international guarantees.
This is a new BICE product that aims to "enhance investments and the growth of an activity with historical difficulties in obtaining bank financing," remarked the Ministry of Production.
"The SSI industry, in addition to being one of the most competitive in Argentina and a fundamental piece of Knowledge-Based Services, is the third export complex after agriculture and cars. It generates 1.4 million jobs," said Francisco Cabrera, head of the portfolio.
Four areas
The BICE credit line meets the main requirements of companies in the sector through four financing destinations: investment advances for hiring employees and purchasing equipment; acquisition of companies in the same field; exports; and granting of international guarantees.
Investment advances.
BICE bases its credit analysis on the business flow of the firm and the projects. "Technology entrepreneurs told us that they could not access loans because the bulk of their capital is human and they do not have physical assets that operate as collateral. Given the intangible nature of the activity, we promoted this change in the traditional approach to credit," explained the president of BICE, Pablo García.
The companies that qualify for the line have the funds for the moment they need to carry out a project and can use them for the hiring of employees (linked to the requirement) and the acquisition of equipment technological.
The maximum amount of this destination will be up to $15 million, up to 80% of the investment, with a term of up to one year and a Badlar + rate between 4.5 and 6.5% (depending on the company's risk categorization), and may apply for a bonus from the Ministry of Production.
Acquisition
BICE finances the acquisition of companies in the SSI sector located within or outside the national territory. This is a key aspect to strengthen the national business community in the face of the expansion policy of companies from other countries, since the growth of the businesses of companies in the sector in many cases occurs through the purchases of other firms.
"We want technological SMEs to be able to add value to their activity, grow and develop without limits. Accompany them in their internationalization process and that they not be forced to sell their firms because they do not get lines of credit to expand," added Carlos Pallotti, undersecretary of Technological and Productive Services.
In this case, the terms are up to 15 years in pesos and up to 10 years in dollars, with up to 2 years of grace and with a maximum amount of $80 million for SMEs and $200 million for large companies.
Exports.
The line also finances and pre-finances the exports of the services produced by SSI companies. It has a maximum amount of US$ 5 million per operation, with a rate of 1.5% up to 210 days and covers up to 75% of the value of the operation.
International guarantees
Also known as SBLC, Stand By Letter of Credit, they are instruments that fulfill the function of mitigating risks linked to international sales contracts. These guarantees help Argentine companies to participate in international export bids.
Updated on: 08/12/2017 00:00:00
