copy the linklink copied!9. Chile

copy the linklink copied!Key facts on SME financing

After 4 years of negative growth in Chile, the year 2018 saw an increase in GDP by 4%, driven mainly by domestic demand (4.7% increase). According to the Central Bank of Chile, growth expectations for 2019 are between 2.75% and 3.5%.1

According to the Commission for the Financial Market (CMF), credit activity, measured as the growth of credit placements, grew by 9.35% in 2017-2018. However, the participation of SMEs in outstanding commercial loans decreased in 2018 to 19.9%. Microenterprises and small businesses are responsible for the increase of outstanding SME loans, and Banco Estado has been the key financial institution working to improve access of SMEs to financing, together with the Corporation for the Promotion of Production (CORFO).

According to the bank credit survey of the Central Bank of Chile, credit conditions were more restrictive for SMEs during 2018 and relatively stable throughout the year. This contrasts with large companies, for which credit conditions showed very favourable levels compared to other periods. According to the Central Bank, the demand for credit is weaker, due mostly to large companies. Indeed, SMEs maintained their levels of credit demand. On the other hand, the interest rate differential between large companies and SMEs was reduced from 4.7% in 2017 to 4.5% in 2018, its lowest level since 2013.

According to the data of the fifth Longitudinal Enterprises Survey (ELE), which surveyed more than 339 022 companies between 2016 and 2017, the rejection rates of loans to SMEs decreased significantly from 12.4% in 2015 to 9.4% in 2017. The utilisation rate for SMEs was 89.3%, the second highest rate since 2007. On the other hand, the rate of application for credit by SMEs decreased from 30.4% in 2015 to 26.7% in 2017.

With respect to venture capital funds, Production Development Corporation (CORFO) and Start-Up Chile’s programmes are the main instruments of SME capital financing, although other private and public initiatives have also developed. Venture capital investments increased again in 2018, reaching an investment of more than CLP 39 billion.

A novelty concerning SME financing is the development of the Fintech industry in Chile, which has grown by 34% in 2017 and 29% in the last year. This rapid growth highlights a thriving ecosystem comprised of more than 84 companies that offer a wide range of financial services for SMEs, ranging from payments and remittances to loans and crowdfunding and scoring services. This was taken into account by the Ministry of Finance, which announced in April 2019 the sending to Congress of a Bill that will regulate and strengthen this industry.

Although the average payment delays for SMEs have decreased in recent years, they continue to be high and unfavourable for SMEs, considering one of the main reasons (declared by these companies) for applying for financing is the availability of capital. The Government has made progress in this area through the promulgation of the Law of Payment in 30 Days, which seeks to obtain certainty in the terms and amounts of the invoices, along with the right to compensation in the case of a breach of deadlines. At the beginning of 2020, a report will be issued that will reflect the impact of this practice on the average term of payment for large companies and SMEs.

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Table 9.1. Scoreboard for Chile

Indicator

Unit

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Debt

Outstanding business loans. SMEs

CLP trillion

6.8

7.6

8.1

9.3

10.1

11.5

11.8

13.7

15.8

17.3

18.7

19.8

Outstanding business loans. total

CLP trillion

40.9

49.9

46.3

48.1

57.2

64.6

69.8

76.4

84.9

88.7

90.3

99.5

Share of SME outstanding loans

% of total outstanding business loans

16.7

15.2

17.5

19.3

17.7

17.9

16.9

18.0

18.6

19.5

20.7

19.9

New business lending. total

CLP trillion

..

..

..

53.3

58.0

58.0

58.1

63.9

67.8

67.4

67.7

71.4

New business lending. SMEs

CLP trillion

..

..

..

2.6

3.1

3.8

3.8

4.4

5.1

5.1

5.6

5.63

Share of new SME lending

% of total new lending

..

..

..

4.9

5.3

6.5

6.6

6.8

7.5

7.6

8.2

7.8

Outstanding Short-term loans. SMEs

CLP trillion

..

..

..

1.6

2.0

2.3

1.8

1.8

1.9

1.8

1.8

1.9

Outstanding Long-term loans. SMEs

CLP trillion

..

..

..

1.0

1.1

1.5

2.0

2.5

3.2

3.3

3.8

3.8

Share of short-term SME lending

% of total SME lending

..

..

..

60.2

63.3

60.3

47.8

41.9

36.9

35.8

32.8

33.3

Government loan guarantees. SMEs

CLP trillion

0.2

0.3

0.8

1.1

1.3

1.9

1.9

1.6

1.7

1.8

1.7

1.6

Government guaranteed loans. SME

CLP trillion

0.3

0.5

1.3

1.8

2.0

2.9

3.1

2.3

2.4

2.6

2.6

2.5

Non-performing loans. total

% of all business loans

2.5

2.2

2.1

2.2

2.4

2.6

2.4

2.1

2.3

2.5

Non-performing loans. SMEs

% of all SME loans

..

..

5.9

6.1

5.5

5.4

6.1

6.1

5.9

5.3

5.2

5.9

Interest rate. SMEs

%

..

..

..

..

..

..

11.8

10.3

9.3

9.3

8.4

8.3

Interest rate. large firms

%

..

..

..

..

..

..

4.7

4.0

3.8

4.0

3.7

3.8

Interest rate spread

% points

..

..

..

..

..

..

7.1

6.3

5.5

5.3

4.7

4.5

Collateral. SMEs

% of SMEs needing collateral to obtain bank lending

44.0

..

49.8

..

..

..

72.8

..

68.1

..

59.9

..

Percentage of SME loan applications

SME loan applications/total number of SMEs

32.9

..

32.4

..

..

..

26.4

..

24.6

..

26.2

..

Rejection rate

1-(SME loans authorized/ requested)

41.4

..

15.0

..

..

..

12.3

..

14.7

..

9.4

..

Utilisation rate

SME loans used/ authorized

86.6

..

91.0

..

..

..

87.9

..

96.7

..

89.3

..

Non-bank finance

Venture and growth capital

CLP billion

26.7

19.3

22.2

27.1

33.9

43.1

30.8

43.2

34.7

40.0

21.9

39.2

Venture and growth capital (growth rate)

%. year-on-year growth rate

..

-27.8

15.3

22.0

25.1

27.0

-28.5

40.1

-19.6

-100

-45.3

79

Leasing and hire purchases

CLP billion

3.0

3.6

3.5

3.8

4.5

5.0

5.6

6.2

6.6

6.7

7.8

8.2

Factoring and invoicing

CLP billion

2.0

2.0

1.4

1.9

2.4

2.6

2.6

2.6

2.8

3.0

3.8

4.4

Other indicators

Payment delays. B2B

Number of days

..

..

..

75.8

74.9

56.7

52.7

55.2

58.0

54.9

56.0

51.8

Bankruptcies. SMEs

Number

122

127

125

136

146

146

164

6

154

295

285

397

Bankruptcies. SMEs (growth rate)

% year-on-year growth rate

..

4.1

-1.6

8.8

7.4

0.0

12.3

-96.3

2 467

91.6

-3.4

39.0

Source: See Table 9.3.

copy the linklink copied!SMEs in the national economy

SMEs account for over 98.6% of all Chilean enterprises2. More specifically, 75.5% of all enterprises are microenterprises, 20.2% are small enterprises and only 2.9% are medium-sized enterprises. Despite being few in number, large firms account for 86.2% of total sales, while SMEs account for only 13.8%.

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Table 9.2. Distribution of firms in Chile, 2018
By firm size

Firm size (annual turnover)

Number

%

All enterprises

959.776

100%

SMEs (up to UF 100 000)

946.143

98.6%

Micro (up to UF 2 400)

724.465

75.5%

Small (UF 2 400 to UF 25 000)

194.321

20.2%

Medium (UF 25 000 to UF 100 000)

27.357

2.9%

Large (more 100 000 UF)

13.633

1.4%

Source: Internal Tax Service 2018.

After showing periods of economic contraction (2014-2017), GDP growth rate rebounded during the year 2018 and reached 4%, with similar projections for the year 2019. Despite these variations, SMEs’ contribution to employment has remained stable, at rate of 66.1% in 2018, according the National Institute of Statistics.

copy the linklink copied!SME lending

Supply-side data indicates that the share of debt held by SMEs to total outstanding debt increased between 2013 and 2018. The outstanding debt held by SMEs increased by 6% de 2017 to 2018. During the same period, total outstanding loans rose from 10%, from CLP 90.3 billion CLP 99.5 billion.

New business lending experienced a significant increase from 2017 to 2018, from CLP 67.7 billion to CLP 71.4 billion, corresponding to an increase of 5% However, loans for SMEs only increased marginally, by 0.53%. On the other hand, short-term loans for SMEs increased by 32% in 2017 and by 33% in 2018.

Figure 9.1 displays the distribution of financing sources used by SMEs in 2017, as self-reported by business owners in the Longitudinal Enterprise Survey (ELE). In comparison with the 2015 data, the main source of financing declared by businesses of different sizes is self-financing, contrary to what was reported in 2018, where banks dominated financial support. Likewise, sources of financing from the State and non-banking institutions also decreased compared to 2015.

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Figure 9.1. Distribution of financing sources used in Chile, 2017
Figure 9.1. Distribution of financing sources used in Chile, 2017

Source: National Institute of Statistics, Longitudinal Enterprise Survey 2017.

 StatLink https://doi.org/10.1787/888934116414

copy the linklink copied!Credit conditions

According to the Quarterly Survey of Banking Credit Conditions of the Central Bank of Chile (Quarterly Survey on General and Standard Conditions in the Credit Market), credit conditions for both SMEs and large companies have remained relatively stable in recent years. However, since the first quarter of 2018, credit conditions are more restrictive for SMEs compared to large business.

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Figure 9.2. Credits conditions approval index in Chile
Figure 9.2. Credits conditions approval index in Chile

Source: Central Bank of Chile, Survey of Banking Credit Conditions, Fourth Quarter 2018

 StatLink https://doi.org/10.1787/888934116433

Interest rates for SMEs decreased between 2013 and 2018 (-3.5 percentage points during this period). Interest margins followed the same trend, with a decrease from 7.1% in 2013 to 4.5% in 2018.

According to the Fifth Longitudinal Enterprises Survey, applications for loans to SMEs in 2017 reached 26.2%, which reflects a decrease with respect to 2015 (30%). This is a possible cause for the increase in self-financing mentioned previously. Similarly, the percentage of SMEs that have applied for and obtained a loan reached 23.4%, a decrease of two percentage points compared to 2015. On the other hand, the utilisation rate of these loans increased from 84.6% in 2015 to 89.3% in 2017.

For SMEs in Chile, the financing of working capital is the main reason for requesting loans. More than 65% of SMEs state that they need liquidity to finance this type of activity. Likewise, a second reason is to obtain financing to buy machinery, equipment, vehicles, etc.

Although there is a tendency to decrease interest rates for SMEs, during 2018 there was an increase in the conditions and restrictions to access credit, which is why these companies used other sources of financing, related to line of credit providers and own resources.

copy the linklink copied!Alternative sources of SME financing

Equity financing

For SMEs in Chile, equity finance plays a secondary role, after bank loans and self-generated financial resources (see Figure 9.1). CORFO has been promoting equity finance through venture capital funds and the Start-Up Chile programme. Additionally, the Government has introduced several regulations to encourage equity finance. In 2001, for example, Bolsa Emergente was created as a special programme for SMEs on the securities market and helped facilitate and reduce listing costs, thus providing SMEs with cheaper sources of finance. Bolsa Emergente furthermore provided tax incentives to investors for five years, as a promotion mechanism to increase growth in venture capital. Since its creation, however, only a few companies have experienced IPOs in Bolsa Emergente and none of them were SMEs.

Along with these public efforts, there have been several private sector initiatives to promote equity financing for SMEs, but these have been stymied by high transaction costs and information asymmetries. As a result, the equity market is currently not accessible to most Chilean SMEs.

Factoring and invoice discounting

The factoring market is built over three main players: The Banking Factoring Association (ACHEF A.G.), the Non-Banking Factoring Association (EFA A.G.) and The Chilean Commodities Exchange (Bolsa de Productos de Chile – BPCl). Nevertheless, the market is strongly concentrated on ACHEF and EFA, which respectively cover 72% and 11% of the total stock of factoring operations (CLP 3 767 billion in 2017). It is estimated that SMEs account for 27% of all factoring stock operations and 75% of all clients.

It is important to note that during April 2019, a bill that introduces amendments to Law 19.2203 was passed, establishing a legal framework for the Commodities Exchange (Bolsa de Productos) and promoting financial inclusion by expanding SMEs’ access to the capital market. The bill aims to stimulate competition in the credit market by decreasing the cost of financing.

Leasing

Leasing services offered in Chile include real estate leasing, leasing on movable assets (machinery, vehicles, computing equipment, medical equipment, etc.), and leaseback services. According to the Chilean Association of Leasing Enterprises (Asociación Chilena del Leasing, ACHEL), leasing operations increased 274% in 2007-18, from CLP 3 billion to CLP 8.2 billion.

Fintech industry

According to the report "Fintech América Latina 2018, growth and consolidation", Chile is part of the main Fintech ecosystems of the region, along with Brazil, Mexico and Colombia, concentrating 7% (84) of the companies in the region. It is important to note that in Chile, 64% of these companies are in advanced stages of development (growth and expansion, and ready to scale).

The Chilean industry exhibited a 29% growth of the number of projects compared to 2017, where 88% of them received external financing (2018). A clear example of the growth of the industry is the case of ComparaOnline Fintech of Personal Finance Managemet that received a financing of USD 14 million.

The Fintech industry offers services such as e-factoring, promptly payment, working capital delivery, remittance advances, alternative finance seeking, and others. As such, it is a market that helps SMEs access a wider and more diversified range of financial services. Players like Fynpal, Chita, Gosocket Corporation, Represéntame.cl and Cumplo are the main competitors in the industry.

Given the importance of Fintech to Chile’s financial ecosystem, the Government, through the Ministry of Finance and Financial Stability Council, is in the process of formulating a bill that will regulate Fintech, crowdfunding and crypto-assets.

copy the linklink copied!Other indicators

Payment delays

Since the end of 2017, payment delays for large companies and SMEs have decreased, with an average payment term of approximately 50 days. However, since the second quarter 2018 began to rise slightly to 53.5 days for large companies and 52.6 days for SMEs.

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Figure 9.3. Average term of payment in Chile
Number of days, by firm size
Figure 9.3. Average term of payment in Chile

Source: Bolsa de Productos de Chile - BPC, 2018.

 StatLink https://doi.org/10.1787/888934116452

SME bankruptcies

Law 20.720, enacted on October 2014, established a new reorganisation and liquidation regime for both corporations and natural persons. The law aims to facilitate firm reorganisations and debt restructurings and maintain companies’ productivity in the event of bankruptcies.

Following the promulgation of Law 20.720, the number of SMEs that have carried out a liquidation process has been increasing systematically, with the exception of 2017. As for the last year, there was an increase of 39% in the number of SMEs reporting bankruptcies with respect to the previous year.

Non-performing loans

Total non-performing loans show a slight upward trend. Despite being at low levels in historical terms, they increased from 2.3% in 2017 to 2.5% in 2018 for all enterprises. On the other hand, for SMEs the increase was larger, from 5.2% to 5.9%. According to the Central Bank of Chile4, a deterioration of defaults is being observed in some economic sectors.

copy the linklink copied!Government policy response

Credit guarantees

State-backed credit guarantees are provided by Banco Estado, through the Small Business Guarantee Fund (FOGAPE), FOGAIN (a credit guarantee scheme for loan obligations, investments and working capital) operated by CORFO, COBEX, Proinversión and the Mutual Guarantee Societies Schemes (IGR). Under the IGR programme, CORFO provides funding to the reciprocal guarantee societies, which in turn provide guarantees to SMEs.

FOGAPE is the oldest credit guarantee scheme in Chile (1980) and it provides guarantee rights to financial intermediaries through an auction process. The auction process is structured according to the fund’s exposure to each financial intermediary.5 Therefore, the lower the coverage level required by a financial intermediary, the higher its chances of obtaining funds.

Similarly, CORFO runs the FOGAIN, COBEX and Proinversión credit guarantee programmes to provide funding for working capital and investments. FOGAIN provides coverage for loans that finance short and midterm projects, or for factoring or leasing endeavours. COBEX provides coverage for foreign trade credit operations. Finally, Pro-Inversion insures credit and leasing operations that require large amounts of money and mature over longer terms (more than 36 months).6

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Figure 9.4. Evolution of Government-backed guarantees in Chile
Figure 9.4. Evolution of Government-backed guarantees in Chile

Source: CORFO and FOGAPE, 2019.

 StatLink https://doi.org/10.1787/888934116471

FOGAIN continues to be the main guarantee programme backed by the Government in terms of representativeness of the total amount of coverage and amounts of credit. During 2018, FOGAIN obtained loans for a total of CLP 755 million, while FOGAPE obtained loans for a total of CLP 500 million. On the other hand, Proinversión obtained loans for a total of CLP 116 million, representing 10% of the total coverage provided by government programmes.

According to its CORFO Public Guarantee Report for December 2018, the guarantee programmes benefited 50 291 companies, granting 63 723 operations, equivalent to CLP 1 664 798 million, where 99% of the guarantees were placed in SMEs; 54% for micro-enterprises, 28% for small companies and 17% for medium-sized companies. The total number of operations showed a decrease of -10% with respect to 2017, and the total number of beneficiaries represents -13.52% with respect to the previous year. On the other hand, with respect to the stock of loans as of December 31, 2018, the programme’s short-term guarantee benefits more than 127 370 companies, with 167 323 operations and a current credit amount of USD 4.027 million.

As in 2017, Banco Estado was the main institution that granted loans backed by CORFO, representing 61% of the number of operations of the Banks and 80.5% of the total number of intermediaries. Of this volume of credit, 76% concerned microenterprises, 17% small companies and 5% of medium-sized companies. The State Bank granted credits for CLP 564 billion, 42% of which were disbursed to microenterprises, 29% to small companies and 20% to medium-sized companies. Banco Santander was the second most active agent in terms of guarantees backed by the Government, with 15% of the total volume of guarantees and number of beneficiaries. The average maturity of the loans backed by CORFO in 2018 was 31.5 months for FOGAIN, 5.8 months for COBEX and 54.9 months for Proinversión.

Mutual Guarantee Societies (IGR) are private institutions created in 2007 that issue certificates of guarantee (usually asset-based) that can be used by firms as collateral to secure loans. In this regard, IGRs enhance the divisibility and mobility of collateral, thus increasing the potential for SMEs to obtain financing. To date, there are nine Mutual Guarantee Societies operating throughout the various IGR programmes.

According to figures as of December 2018, the total cash flow reaches USD 3.693 million, a situation that has meant supporting operations of more than 37 000 beneficiaries. The distribution of the total amount of current certificates by company size goes as follows: 33% to microenterprises; 36.9% to small companies; 25.8% to medium-sized companies and 4.3% to large companies. In addition, the total number of operations in force by company size are distributed as follows; microenterprises: 28.9%, small companies: 47%, medium-sized companies: 21.3% and large companies: 2.7%. As in 2017, Banco Security is the main institution that works with IGR, having provided 29.5% of the total amounts of the current certificates.

Equity financing policies

CORFO is the Government institution in charge of promoting and developing the venture capital industry. CORFO finances funds that invest in start-ups, but it also provides long-term lines of credit to fund managers. It currently runs three programmes that support VC funds; the Early-Stage Fund (Early Stage Fund, FT), the Development and Growth Fund (FC Development Fund), and the Technology Early-Stage Fund.

The Early-Stage Fund (FT) is designed to expand the creation of new investment funds that provide financing to high-growth SMEs. The investment fund’s management team acquires a stake in SMEs and becomes involved in their operations. To be eligible for funding, SMEs must have a concrete early-stage business project (which is innovative and shows high-growth potential), have difficulty or be incapable of implementing the project by themselves due to insufficient capital, have low levels of management skills or other needs that necessitate the expertise of fund managers to enhance their growth.

The Development and Growth Fund (FC) programme aims to expand the creation of investment funds focused on high-growth potential, expansion-stage firms.

The Technology Early-Stage Fund (FET) programme provides lines of credit and subsidies for the early stage funds that function as business accelerators. It also invests in technology-oriented start-ups. CORFO subsidises the operational expenses of fund managers to accelerate and scale their business projects.

According to its Risk Capital Report of June 2018, during the first semester of 2018, investments of the Funds amounted to a total of USD 751 million. Altogether, the fund has invested CLP 15.1 million in micro, small and medium-sized enterprises, which represent 55%, 14% and 19% of the investments respectively. Portfolio investments are distributed in a range of sectors. The most notable are the IT sector, which accounts for 18.6% of portfolio investments, the retail sector, which represents 12.3% of portfolio investments; and agriculture, which represents 11.7% of portfolio investments. Since its inception, the fund has supported 271 companies.

CORFO also manages the Start-Up Chile program. The objective of the programme is to attract world-class entrepreneurs to Chile to create a dynamic business ecosystem. The programme provides entrepreneurs CLP 50 million capital. Currently Start-Up Chile has 3 programmes; The S Factory, a pre-acceleration programme that supports new businesses run by women entrepreneurs up to USD 25 000; The Seed program, acceleration for startups with functional and validated products up to USD 80 000 and “Huella”, acceleration programme for triple-impact startups up to USD 80 000. Triple impact refers to business model based on 3 concepts: economic; social and environmental impact.

In November 2018 “Huella”, a new business accelerator operated by CORFO aiming to accelerate startups with social and environmental impact, was launched. This initiative will take advantage of the methodology developed by Start Up Chile, so that through a complete process of accompaniment and financial support, triple-impact entrepreneurs can refine their value propositions and accelerate the development of their projects. The programme will start operating during 2019.

New financing initiatives

30-day payment law

In June 2018, the Ministry of Economy, Development and Tourism made amendments to the Bill of Payment in 30 Days, which entered the legislative process in 2016. This bill, which covers companies of all types and sizes, seeks to develop a regulatory framework that addresses a central issue for SMEs: the timely payment of their invoices. The bill limits payment terms to 30 days, adding a conventional interest rate if delays take place. For public procurements, payments to suppliers must be made within 30 calendar days following receipt of an invoice or the respective tax instrument issued, and terms of up to 60 calendar days may be established for a respective auction or public procurement instrument. Additionally, the issuance of an Electronic Dispatch Guide will be mandatory for supplying companies; and, finally, amendments to invoices by the purchasing company will be prohibited after 8 days from the issuance of the invoice. The bill was promulgated in January 20197 and came into force in May 2019.

Financial Intermediation Society (INFISA)

During the discussion of the government budget of 2018, the idea emerged of creating an institution that would centralize the access to financing through a state guarantee scheme for MSMEs, whether from banks or other types of financial entities. The initiative aims to take the recommendation of the World Bank into account to ensure better management of the state guarantee programme’s funds through the creation of a legal entity independent of CORFO.

The bill mainly contemplates the creation of a state-owned company that will be overseen by the Commission for the Financial Market (CMF). The project states that INFISA will be able to establish and manage hedge funds, grant hedges for the issuance of securitization debt securities and grant loans to financial entities. INFISA will administer the current guarantee programmes FOGAPE and FOGAIN. Currently the project is in its third legislative process.8

Tax modernisation project

In August 2018, the tax reform bill called "Modernización Tributaria" (Tax Modernisation) entered into the Congress. Among other matters, it seeks to create incentives for investment by:

  • Promoting the purchase of fixed assets, granting the possibility of establishing instant depreciation;

  • Simplifying the tax operation of SMEs by creating a special tax regime called "Cláusula Pyme" (SME Clause), aimed to reduce bureaucratization and the tax rate from 27% to 25%;

  • Ensuring tax responsibility for the digital economy by establishing a 10% tax rate for digital services; and

  • Make the issuance of all tax documentation in electronic format mandatory, including the ticket issued to the final consumer. Currently it is mandatory to issue in electronic format only the invoice (between companies) and not the ticket to the final consumer.

Currently the Bill is in its first legislative process.

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Figure 9.5. Trends in SME and entrepreneurship finance in Chile
Figure 9.5. Trends in SME and entrepreneurship finance in Chile

Source: See Table 9.3.

 StatLink https://doi.org/10.1787/888934116490

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Table 9.3. Definitions and sources of indicators for Chile’s scoreboard

Indicator

Definition

Source

Debt

Outstanding business loans, SMEs

Outstanding loans by Business size (Amount of the loan used as proxy of Business Size)

Superintendency of Banks and Financial Institutions (SBIF)

Outstanding business loans, total

Stock of loans in the banking system by Dec of each year

Superintendency of Banks and Financial Institutions (SBIF)

Share of SME outstanding loans

Share of SME loans in the banking system by Dec of each year

Superintendency of Banks and Financial Institutions (SBIF)

New business lending, total

Cumulative loans generated in the system by December of each year (monthly information, flow)

Superintendency of Banks and Financial Institutions (SBIF)

New business lending, SMEs

Loans acquired by SME by December of each year (monthly information, flow)

Superintendency of Banks and Financial Institutions (SBIF)

Share of new SME lending

Share of loans acquired by SME by December of each year (monthly information, flow)

Superintendency of Banks and Financial Institutions (SBIF)

Outstanding short-term loans, SMEs

Cumulative monthly short term debt flow (micro, small and medium-sized firms) with a maturity of up to one year

Superintendency of Banks and Financial Institutions (SBIF)

Outstanding long-term loans, SMEs

Cumulative monthly long term debt flow ( micro, small and medium-sized firms) with a maturity greater than one year

Superintendency of Banks and Financial Institutions (SBIF)

Share of short-term SME lending

Share of cumulative monthly short term debt flow (micro, small and medium-sized firms) with a maturity of up to one year

Superintendency of Banks and Financial Institutions (SBIF)

Government loan guarantees, SMEs

Total value of SME debt exposure covered by Government guarantee schemes

BancoEstado - CORFO

Government guaranteed loans, SMEs

Total value of SME Government-backed debt in the system?

BancoEstado - CORFO

Non-performing loans, total

% amount of non-performing debt over the total amount of debt (performing amount + arrears) for all firms. The indicator includes bank loans, or a fraction thereof, that are past due by up to 90 days from the maturity date

Superintendency of Banks and Financial Institutions (SBIF)

Non-performing loans, SMEs

% amount of non-performing SME debt over the total amount of SME debt. The indicator includes bank loans, or a fraction thereof, that are past due by up to 90 days from the maturity date

Superintendency of Banks and Financial Institutions (SBIF)

Interest rate, SMEs

Weighted Average Interest rate for SMEs

Superintendency of Banks and Financial Institutions (SBIF)

Interest rate, large firms

Weighted Average Interest rate for large and mega firms

Superintendency of Banks and Financial Institutions (SBIF)

Interest rate spread

Interest rate spread between large firms and SMEs

Superintendency of Banks and Financial Institutions (SBIF)

Collateral, SMEs

Need of a collateral for obtaining bank credit

Longitudinal Enterprise Survey - Ministry of Economy, Development and Tourism

Percentage of SME loan applications

Share of credit applications made by SME, includes approved and rejected loans

Longitudinal Enterprise Survey - Ministry of Economy, Development and Tourism

Rejection rate

Percentage of SMEs that applied for a loan and whose application was rejected during a given year. This indicator stems from data of a survey of establishments. It does not include the fishing, education and health and social work industries. The survey does not include businesses with an amount of annual sales lower than 800 UF.

Longitudinal Enterprise Survey - Ministry of Economy, Development and Tourism

Utilisation rate

Percentage of SMEs that are using or used the approved credit (total number of SMEs with a credit over total number of SME with credit approvals)

Longitudinal Enterprise Survey - Ministry of Economy, Development and Tourism

Non-bank finance

Venture and growth capital

Annual amount invested in new early stage firms and firms with growth potential and a track record (venture capital)

CORFO

Venture and growth capital (growth rate)

Annual variation of investment in new early stage firms and firms with growth potential and a track record (venture capital)

CORFO

Leasing and hire purchases

Stock of leasing contracts

SBIF - Chilean Leasing Association

Factoring and invoice discounting

Stock of factoring operations

Banking Factoring Association (ACHEF) - Statistics – ACHEF - www.achef.cl

Other Indicators

Payment delays, B2B

Own elaboration based on Bolsa de Productos - ASECH Payers Ranking Quarterly Reports

Bolsa de Productos - ASECH

Bankruptcies, SMEs

Number of SME bankruptcies.

Superintendency of Insolvency and re-entrepreneurship

Bankruptcies, SMEs (growth rate)

% of bankruptcies from closed companies.

Superintendency of Insolvency and re-entrepreneurship

References

ASECH, B. d. (2018). Payers Ranking. 1st Quarter.

ASECH, B. d. (2018). Payers Ranking. 2nd Quarter.

ASECH, B. d. (2018). Payers Ranking. 3rd Quarter.

ASECH, B. d. (2018). Payers Ranking. 4th Quarter.

Central Bank. (2018). 4th Quarter Survey on Credit Approval Standards and Demand.

Central Bank. (2018). 1st Semester Financial Stability Report.

Central Bank. (2018). Monetary Policy Report.

CORFO. (2018). Contingent Liabilities Report.

CORFO. (December 2018). Mutual Guarantee Institutions Public Report.

CORFO. (December 2018). Public Guarantee Report.

CORFO. (December 2018). Venture Capital Public Report.

Finnovista. (2017). Chile's Fintech Radar. Obtenido de https://www.finnovista.com/fintech-radar-chile-actualizacion/

Internal Tax Service. (December 2018). Enterprises Statistics by Size According to Turnover. Obtenido de http://www.sii.cl/sobre_el_sii/estadisticas_de_empresas.html

Ministry of Economy, Development and Tourism. (March de 2019). 5th Longitudinal Enterprise Survey. Obtenido de Ministri of Economy, Development and Tourism.

National Statistics Institute. (2018). National Employment Survey Data Bank. Obtenido de http://bancodatosene.ine.cl/

Superintendency of Banks and Financial Institutions. (2018). 4th Quarter Banking Landscape Report.

Notes

← 1. This rate considers the economic performance of the first quarter.

← 2. SMEs can be defined on the basis of their annual turnover, as stipulated by law 20.416, that establishes special rules for SMEs. On the other hand, the banking industry defines SMEs according to loan sizes received by businesses.

← 3. https://www.leychile.cl/Navegar?idNorma=1131816

← 4. Financial stability report (second semester 2018).

← 5. Banks, factoring firms, saving and credit cooperatives (credit unions), mutual credit guarantee societies, etc.

← 6. The average amount of credit is CLP 145 Million and the term 56 months, while the average for FOGAIN

← 7. https://www.leychile.cl/Navegar?idNorma=1127890

← 8. http://www.senado.cl/sociedad-de-intermediacion-financiera-a-tercer-tramite/senado/2019-03-13/205258.html

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