Getting cash by discounting accounts receivable is a form of credit which has increased by 160% in the past two years.

In April 2011 the 18 companies grouped under the Costa Rican Chamber of Factoring Companies managed a portfolio of $177 million, which is double the amount recorded in 2009. In June 2012, the business of factoring in Costa Rica amounted to about $220 million.

In an article in Nacion.com Jose Pablo Arce, manager of Lafise Factoring Bank states that “The boon has come from profits. It is a way to generate liquidity and convert a credit sale into cash. ”

Factoring or invoice discounting allows companies to get cash advances in exchange for their outstanding invoices.

“Factoring companies also offer support services to clients throughout the business cycle, with electronic products such as guarantees for tenders and international factoring among other things.”

Source: La Nacion