Paper
Leasing for Micro and Small Entrepreneurs in Chile: An Answer to Mid & Long-Term Funding Needs
How is leasing beneficial to micro-entrepreneurs in Chile?
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76 pages
This paper studies lease financing as an option for micro-entrepreneurs in Chile. It analyzes the operations of Inversiones para el Desarrollo S.A. (INDES) for a possible dissemination of information and the incorporation of this type of service in other microfinance institutions (MFIs).
The paper provides a detailed analysis of the external and internal factors that contributed to the development and/or performance of INDES. These include:
- External:
- Economic environment;
- Micro and small enterprise sector;
- Government policies in support of micro and small enterprises;
- Legal and regulatory framework.
- Internal:
- Property and governance;
- Organizational structure;
- Human resources;
- Financial structure.
Finally, the paper discusses the advantages of the leasing service provided by INDES:
- For the micro-entrepreneurs:
- Leasing allows clients to increase their total ready availability of capital derived from external sources, freeing-up their own sources of capital for productive assets;
- The lessee has the possibility to get discounts for the full payment in cash.
- For INDES:
- Leasing operations are more secure because they are guaranteed by the very object of the leasing;
- As the legal proprietor of the goods, the lessor is in a position of increased security.
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