A private-equity vehicle of Zurich-based responsAbility Investments has allocated $6 million to a Brazilian factoring company.
Dunasplus provides financing for small companies in underserved areas of Brazil that often have limited access to affordable loans to meet their short-term working capital needs.
Commercial banks are largely absent from the SME market, responsAbility said, and this financial gap has been intensified by recent economic conditions in the country.
Dunasplus has an automated IT platform that allows it to process a large number of small transactions in a cost-efficient way.
responsAbility added that the Brayilian firm supplies SMEs with short-term working capital financing through the factoring of receivables.
Commenting on this recent allocation, Michael Fiebig, head of equity investments and financial institutions at responsAbility, said:
‘Despite the current challenging economic environment, many Brazilian SMEs are operating very successfully and are generating demand for fair and straightforward financing, such as that supplied by Dunasplus. We look forward to supporting this dynamic company as it embarks on its next stage of growth.’