Summary
Asset-based lending (ABL) in Mexico started between the late 1970s and early 1980s. At the time, Mexico went through recurrent economic and credit crises that ended with the nationalization of banks in 1982. Change came slowly. In July 2006, the Mexican Congress issued a number of changes in the law with regards to Auxiliary Credit Activities and Banking, which specifically referred to Sofoles, leasing and factoring. As a result, these activities were no longer restricted to companies that had government authorization. During recurrent crises, large companies had to support their markets from a credit point of view, when the financial sector backed off. Although ABL in Mexico is not new, it still is at a very early stage. Great opportunities exist in a market not yet well attended by the financial sector, eager for well-differentiated products with high added values in an economy that has now been stable for many years.
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Opportunities in Mexico
Talking about asset-based lending in Mexico is a relatively short story compared to what has happened in a mature market like the U.S.
ABL in Mexico started between the late 1970s and early 1980s. At the time, Mexico went through recurrent economic and credit crises that ended with the nationalization of banks in 1982. Since most of the banks' monies went to finance government activities, credit was scarce and in many cases d...See the full content of this document
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