Over 60% of microenterprises in Paraguay resort to loan sharks or informal lenders to finance their businesses, according to an alert from the Ministry of Industry and Commerce (MIC). The Vice Minister of Micro, Small, and Medium Enterprises (MSMEs), Gustavo Giménez, revealed that the interest rates on these loans can exceed 10% per month, which annually represents an exorbitant cost for small entrepreneurs.
During the panel 'More Tools for Competitiveness,' held at the 2nd Banking Convention of Paraguay 2026 at the Sheraton Asunción Hotel Convention Center, access to financing was identified as one of the main obstacles for micro, small, and medium enterprises. 'How can we expect to be competitive with rates of up to 300% per year? Impossible,' Giménez questioned.
The vice minister argues that formalization is a fundamental path for MSMEs to access more favorable financial conditions. Among the proposed measures are the development of business bank accounts, specific credit lines, MSME credit cards, and expanding access to accounts in credit unions for companies incorporated as legal entities.
One of the concrete initiatives announced is 'Adelanta,' a factoring mechanism that will allow companies to convert their invoices into liquidity quickly. The first phase of the project will be directed at companies that sell to the Hambre Cero program, with the goal of making funds available within 48 hours. The intention is to later extend the mechanism to suppliers of supermarkets and large companies.
Giménez highlighted that the difficulty in accessing credit also impacts companies' growth capacity. The data presented shows that the transition rate from micro to small enterprise does not exceed 3%, and from small to medium enterprise remains below 6%.
In addition to factoring, the MIC is working on other fronts, such as movable guarantees, crowdfunding, mutual guarantee societies, reform of the factoring law, and second-chance mechanisms for companies in insolvency situations.
Another ongoing project aims to reduce the cost of the electronic signature for MSMEs. The MIC is negotiating with trusted service providers for a package that includes the electronic signature and technological tools, with the goal of facilitating the adoption of digital contracts, factoring, and electronic promissory notes. The product is expected to be available between October and November of this year.