A new competitor has emerged in the burgeoning field of financial services for Latin America’s small and medium-sized enterprises.

The provision of financial services has presented a significant opportunity for startups originating from Brazil, Colombia, and Mexico in recent years. Now, Xepelin, a recently established company based in Chile, intends to participate in this growing market.

Xepelin was founded by Sebastian Kreis and Guillermo Molina Carvallo, who set out to establish a modern, online banking platform specifically designed for the needs of small businesses throughout Latin America.

The company’s offering to business owners centers around a form of lending called factoring, enabling small businesses to access funds based on their anticipated future revenue. Kreis notes that, in Latin America, where access to conventional loans for small businesses is often limited, factoring provides an innovative approach.

Xepelin has already secured a credit line totaling several million dollars, alongside an initial funding round. These resources will be utilized to attract customers and to further develop tools for revenue management and resource planning.

The company is initially launching operations in Chile and Mexico, leveraging the founders’ extensive experience in the financial services sector within these countries. They anticipate expanding their reach throughout the continent, mirroring the expansion of private debt services for small businesses.

Other startups, including Portal Finance and Marco Financial, are also focused on the lending sector. Similar to Xepelin, these companies have also obtained multiple credit lines to support their operations.

Kreis projects that debt financing in Latin America has the potential to increase seventyfold over the next ten years, driven by evolving regulations and growing demand for digital financial solutions.