Financial Crime World

Financial Transactions in El Salvador Under Scrutiny: Due Diligence Key to Growth of Fintech Companies

San Salvador, El Salvador - Financial inclusion in El Salvador is on the rise, thanks to fintech companies like Flexiplan that are revolutionizing access to credit for unbanked populations. However, navigating the complex landscape of financial transactions in El Salvador requires meticulous due diligence.

A New Era of Financial Inclusion

Flexiplan, a Salvadoran fintech company, has been at the forefront of providing same-day financing for motorcycles, catering to the needs of underserved communities. Founded by Tito Gutiérrez Ávila, the company’s innovative approach has enabled thousands of Salvadorans to access affordable credit and improve their quality of life.

The Growth Story

  • According to a recent report, Flexiplan has seen significant growth, with projected approval rates increasing by 300% from 2021 to 2024.
  • To sustain this momentum, the company required additional investment to expand its reach and services.

Support from USAID’s Investment Facilitation El Salvador (IFES) Initiative

The advisory firm CrossBoundary, in partnership with local firms Innbox and SandBox, provided transaction advisory services to help Flexiplan become investment-ready. This support played a crucial role in supporting Flexiplan’s growth.

Meeting Rigorous Due Diligence Requirements

With USAID’s support, Flexiplan was able to meet the U.S. International Development Finance Corporation’s (DFC) rigorous due diligence requirements to obtain a $6 million loan.

  • “The combination of its impact story and the company’s excellence in executing its business model made Flexiplan stand out,” said Loïc Porte, Senior Associate at CrossBoundary.
  • “We’re proud to have played a role in supporting their growth and expansion.”

A Testament to Fintech Companies

As Flexiplan continues to expand its services, it is poised to improve financial inclusion, incomes, and quality of life for thousands of Salvadorans. The company’s success serves as a testament to the potential of fintech companies in driving economic growth and development in El Salvador.

With due diligence at the forefront, financial transactions in El Salvador are becoming more transparent and accessible, paving the way for innovative solutions like Flexiplan to thrive.