The credit offer is carried out in partnership with R2, a fintech that offers financial solutions through an integrated approach under the embedded finance model.
This week, Chilean scale-up company Justo announced the launch of a new flexible loan service, with the aim of supporting the growth and financial stability of its affiliate network in Chile.
The Justo platform is an ecosystem of technological tools for restaurants, which help them optimize their operations. Created by Rodrigo Segal and Nicolás López in 2018, the firm already has a presence in several Latin American countries.
The credit offer is carried out in partnership with R2, a Latin American fintech created in Mexico by Roger Larach and Roger Terán that offers financial solutions through an integrated approach under the embedded finance model.
This model will allow companies like Justo to integrate and offer financing to their affiliated restaurants, accessing loans quickly, safely and without complications.
“This financial product is available to businesses affiliated with Justo in Chile, who will be able to access additional capital to expand, improve their infrastructure or face unexpected situations. Unlike traditional loans, the loan repayment is flexible, as it adjusts to the sales of the restaurant that requested the money, which greatly helps the operation in the short and medium term,” says Rodrigo Segal, CEO of Justo .
A 24-HOUR PROCESS
The loan application process is fast, taking just 5 to 10 minutes online and without the need for extensive documentation. Once approved by R2, the funds are deposited into the applicant's bank account in less than 24 business hours - depending on the time restrictions of each bank - after having electronically signed a digital contract.
“R2 shows each pre-approved merchant three offers with different amounts and defined conditions so they can choose the one that best suits them,” explains Willem Schol, CRO of Justo .
The loan payment is flexible and sustainable, as it is paid with a percentage of the sales received through the Justo platform, without requiring collateral and both natural and legal persons can apply for the service.
UNSERVED SECTOR
SMEs are essential to the Chilean economy, representing nearly 98.6% of companies and generating 65.3% of formal jobs.
Paradoxically, in order to contribute to the economy, one of the most common obstacles for this business segment is the lack of access to capital, which is one of the causes of most of the failures of these ventures.
On the other hand, there are different financial entities that can help SMEs with capital, but generally, the rates or conditions are not the most convenient, according to Justo.
To apply for these loans, businesses associated with Justo must have a constant transactional activity and a history of at least six months using the platform. The loans, which range from $95,000 (US$ 100) to $15,000,000 (about US$ 16,000), have payment terms that vary between 8 and 12 months, with 10 months being the most common term so far with an average ticket of $2.4 million (US$ 2,500) per loan.
“We are excited to be able to offer loans to Justo restaurants through this innovative solution. Our risk models with artificial intelligence and machine learning are responsible for personalizing offers for each business and providing capital without friction,” said Roger Larach, CEO of R2.
