Tangelo announces its first credit disbursement with the US Development Finance Corporation (“DFC”) for 10,200,000 USD
MEXICO CITY, July 20, 2022 /PRNewswire/ — Tangelo announces that it has made its first disbursement of approved credit in 2020 with DFC. This disbursement amounts to $10,200,000 and has the following characteristics: a grace period of 2 years followed by 8 years of quarterly amortizations and is guaranteed by Tangelo’s accounts receivable. The objective of the loan is to finance SMEs of Mexico and support their economic development. The loan’s favorable credit terms allow the business to be more balance sheet efficient by having two years to utilize the remainder of the credit line, allowing the business to maintain cash levels healthy. DFC approved a line of credit to Tangelo for $45,000,000; the company plans to use the rest of the facility in subsequent quarters.
“The first disbursement with the DFC shows Tangelo’s ability to diversify its funding sources and attract resources during times of market uncertainty, it is a clear step in the company’s funding strategy. We expect to to use the remainder of the credit line in subsequent quarters, prioritize Tangelo’s long-term vision and strengthen the company’s balance sheet,” said Abelardo LoscosFinancial and Sustainable Development Director of Tangelo. Furthermore, he said, “We are very proud to make the first installment with one of the most prestigious institutions in the world. DFC bases its approval decision on issues of sustainability and financial strength, which validate Tangelo’s business model.
“Small and medium-sized enterprises (SMEs) of Mexico are driving much of the country’s economic growth, but they lack sufficient resources to grow their businesses,” said Jim PolanVice President of DFC’s Development Credit Office. “DFC’s investment in Tangelo – formerly Mexarrend – will help address this issue by supporting the creation of quality jobs, encouraging innovation and empowering women in the economy.”
The US International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing developing countries today. We invest in all sectors, including energy, healthcare, critical infrastructure and technology. DFC also provides financing to small businesses and women entrepreneurs to create jobs in emerging markets. DFC’s investments adhere to high standards and respect the environment, human rights and labor rights.
Tangelo is a Latin American financial technology company specializing in alternative credit and with more than 25 years of experience in developing tailor-made credit solutions for consumers and SMEs in the region. Using a proprietary technology platform and data-driven models, Tangelo manages a diverse set of bespoke products ranging from point-of-sale finance, supply chain finance, asset-based lending, credit scoring as a service and end-to-end. white label digital credit solutions for many industries.
SOURCE Mexarrend, CV SAPI