The National Guarantee Fund provides liquidity through factoring.

To support businesses facing liquidity issues due to unpaid invoices, the National Guarantee Fund (FNG) launched a product that supports factoring and confirming operations.

The FNG seeks to facilitate access to fresh funds for micro and small businesses, while supporting the financial institutions that provide this service. This product is designed to address a specific need of many companies: having cash available while they wait for their clients to pay. See more: Will the country's fiscal and political situation affect the performance of the Colombian peso? The FNG's support will allow more entrepreneurs to access financing alternatives with better conditions, while strengthening the use of these mechanisms in the country.

“Many businesses, especially smaller ones, have to wait weeks or even months to receive their invoice payments. With this new product, we're helping them access immediate liquidity, ease their cash flow, and continue operating smoothly,” said Piedad Muñoz, acting president of the FNG.

See more: 'The financial system is resilient, although there are vulnerabilities'

Factoring allows companies to sell their outstanding invoices to a financial institution and receive the money in advance.

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