The startup has developed a lending platform that utilizes performance-based credit models, allowing businesses to access credit without relying solely on personal credit histories. This approach provides clients with reliable and transparent financing options to support their growth.
Funding
$242M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Small and medium-sized enterprises (SMEs) often face challenges in accessing credit due to limited credit history or lack of traditional collateral, hindering their ability to invest in growth opportunities or manage working capital effectively. Traditional credit scoring models may not accurately reflect the creditworthiness of these businesses, leading to potentially viable businesses being denied financing.
Solution
Covalto provides a suite of financial products, including business accounts and various credit lines, designed to support the growth and operational needs of SMEs. Covalto offers distinct credit options such as "Crédito Simple" for general capital investment, "Crédito Refaccionario" for acquiring fixed assets, and "Crédito de Habilitación o Avío" for financing working capital and raw materials. These credit solutions utilize performance-based credit models, expanding access to businesses that may not qualify under conventional lending criteria. Additionally, Covalto provides business and personal accounts with no minimum opening balance and online banking access, alongside investment options backed by IPAB insurance, creating an integrated financial platform for SMEs and individuals.
Target Audience
Covalto primarily targets small and medium-sized enterprises (SMEs) seeking flexible financing solutions and individuals looking for accessible banking and investment products.
Features
- "Crédito Simple": Loan amounts up to $40 million M.N. with repayment terms up to 5 years, suitable for capital investment or debt refinancing.
- "Crédito Refaccionario": Financing up to 80% of the asset value for purchasing equipment, machinery, or transportation assets, with repayment terms up to 5 years.
- "Crédito de Habilitación o Avío": Working capital loans up to $40 million M.N., tailored to the production cycle, secured by the financed assets.
- Covalto Ágil®: Credit lines up to $3.5 million M.N. with terms up to 2 years for immediate liquidity needs.
- Business and personal accounts with no minimum opening deposit, no monthly maintenance fees (with activity), and unlimited free SPEI transfers via online banking.
- Investment options including fixed-term "Pagaré" and "Certificado de Depósito" accounts with competitive interest rates.
- Online banking platform for account management, fund transfers, and investment management.