With five years in the industry, CAPex, a Puerto Rican financial institution serving small and medium-sized businesses, is preparing to enter new markets and expand its market penetration.
The Puerto Rican company, dedicated to financing heavy transportation and medical equipment for SMEs, began by acquiring $2.4 million in loans from the former Capital Leasing Source finance company and has already generated $35 million in capital. CAPex's current client portfolio stands at $24 million.
CAPex President Fernando Machuca told CB en Español, “The advantage we have over traditional banks and the competition in general is that we are more agile. You send me all the documents today, I review them, and we can proceed that same day. I'm not going to leave my clients processing documents all day or for several weeks only to end up telling them no.”
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This year, the company has generated $3.5 million in loans and plans to raise an additional $9 million.
CAPex recently invested over $100,000 of its own capital in furniture, technology equipment, software, and office decor to improve its productivity. Unlike traditional banks, CAPex advises SMEs on the loan application process and uses technology as an essential tool to streamline those processes.
“They compensate with interest, I compensate with quality. That’s the difference, the agility,” Machuca pointed out.
“We have sophisticated leasing software, designed exclusively for this type of financial institution. It includes depreciation, interest calculation, different types of loan amortization, delinquency analysis—everything you need to determine how a loan is performing,” he emphasized.
They attribute their success over the years to the excellent service they offer, as their clients are the company’s main promoters. “Our business has always been based on referrals; CAPex’s own clients refer other people to us, and that’s how we build our portfolio,” he noted.
CAPex is licensed by the Office of the Commissioner of Financial Institutions (OCIF) to provide movable asset loans, better known as “leasing,” as well as financing for individuals. Trade and Export launches new program to boost SMEs
Based on experience in the banking sector, the president of CAPex anticipates entering the accounts receivable and inventory financing business, better known as asset-based lending, on a smaller scale.
According to Machuca, this is a large $10 million market, and he expects to begin implementation in Puerto Rico in 2018 and 2019. This is because financial institutions similar to CAPex do not currently offer this type of business on the island.
