JPMorgan Partners Fintech OmniLatam to Support SMEs in LATAM

JPMorgan Chase & Co JPM.N has partnered with fintech OmniLatam to extend credit lines to mid-sized and small suppliers of big corporations in Latin America.

OmniLatam, which operates in Colombia and Chile and recently opened an office in Brazil, will provide receivable-backed credit and working capital lines to suppliers of JPMorgan's clients in the region, which are large local corporations or multinationals' subsidiaries.

"Suppliers will have access to lower cost to discount their receivables at a time of rising interest rates", said Ignacio Munoz De Cote, Head of Latin America Payments at JPMorgan. Corporations can ensure their suppliers are financially healthy and minimize pressures for raising prices, he added.

Filipe Oliveira, Latam Trade and Working Capital executive at JPMorgan, said the bank expects to retain 100% of the credit extended through the partnership in its balance sheet. The bank expects its current supply chain finance assets to double within three years with the partnership.

OmniLatam's CEO and co-founder Diego Caicedo said the company plans to offer additional working capital products related to accounts receivable and payable and potentially launch new products through the partnership.

Source: Reuters