Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
Loan services/factoring/loan broking/finetrading
Body
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time. 

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.

Introduction

Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

Colombia has been strengthening its environment for alternative lending and related services. The country’s alternative lending market was valued at around USD 1.59 billion in 2024 and is projected to reach over USD 3.2 billion by 2028, showing an average annual growth rate of nearly 20%. This reflects a strong appetite among entrepreneurs and SMEs for non-traditional financing solutions. The attitude toward factoring is equally positive: Colombia ranks fourth in Latin America by factoring volume, with factoring operations representing close to 3% of national GDP. However, presence among micro and small businesses remains low, so there is significant room for this tool to expand as more companies adopt electronic invoicing and digital platforms.

Additionally, the country’s reverse factoring segment is gaining traction, with volumes surpassing USD 1.3 billion in 2023 and expected to triple by 2030. Finetrading, brokerage, and ancillary financial services are also seeing momentum, driven by the rise of FinTech platforms and improved regulations that make it easier for companies to access working capital, manage risk, and attract investors. In short, Colombia’s attitude towards diverse lending and supply chain financing instruments is open and increasingly digital, but full market potential still depends on more education and streamlined processes for small businesses.


Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

As mentioned, FinTechs providing loans with own means do not require any license from the Colombian State.

Yet, Decree 1074 of 2015, extensively regulates the activity of Factoring, carried out by companies engaged in factoring services established as commercial entities exclusively dedicated to factoring activities. Among the key aspects addressed by this regulation are:

  • Calculation of the mandatory solvency limit and the consequences of non-compliance;
  • Obligation of the company engaged in factoring services to prove the exclusive corporate purpose through the certificate of existence and legal representation issued by the respective Chamber of Commerce;
  • The possibility to take insurance to cover the risk of default or insolvency;
  • Creation of National Single Registry of Factors and obligation of companies engaged in factoring services to register therein;
  • Prohibited operations related to factoring, among others.
On the other hand, according to Law 1676 of 2013, the minimum condition for factoring in Colombia is to be a company legally organized as a legal entity and to be registered before the Chamber of Commerce.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

Currently, there are already more than 1.2 million companies in Colombia issuing electronic invoices, with over four million e-invoices generated daily. . In Colombia, this model amounts to only 3% of the GDP; for this reason, the Colombian government has bet on the so-called 'social factoring', as a solution to generate liquidity to the country's companies, generating a policy that governs the enabling of the electronic invoice as a value title through Radian (registration of electronic invoice of sale as a security). This platform allows the traceability of electronic invoices of sale as securities that circulate in the national territory, as well as the events associated with them.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

In 2020 Decree 1154 was issued regulating electronic invoicing in the country. This has been of great help to the factoring business as it makes it much easier for entrepreneurs to make use of this tool that has been a success for the financing of large, medium, and small companies.

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