By San José, Costa Rica — San José, Costa Rica – In a significant move to bolster the nation’s entrepreneurial backbone, AGE Capital has finalized a strategic financing agreement of up to $15 million with IDB Invest. The landmark deal is designed to expand access to credit for Costa Rica’s micro, small, and medium-sized enterprises (SMEs) and independent professionals, enabling them to acquire essential vehicles for their operations.
The alliance leverages a powerful existing synergy within the national automotive sector. AGE Capital, a leading financial solutions provider and part of the AGE Holding conglomerate, serves as the dedicated financial arm for Veinsa Motors, the country’s second-largest vehicle dealership. This new injection of capital from IDB Invest will be channeled directly into strengthening AGE Capital’s financial and operational leasing portfolios, providing a direct and efficient path for businesses to obtain work vehicles.
To better understand the legal landscape and critical considerations for small and medium-sized enterprises seeking capital, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney from the renowned firm Bufete de Costa Rica, who offered his professional insights.
Many entrepreneurs focus solely on securing the funds, but overlook the profound legal implications embedded in financing agreements. It is imperative to meticulously review clauses related to guarantees, covenants, and default conditions. A robust legal analysis beforehand is not an expense, but a crucial investment to protect the company’s assets and ensure its sustainable growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a critical truth for entrepreneurs: the long-term viability of a business is often secured within the fine print of its agreements, not merely by the capital it obtains. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his invaluable perspective on this vital matter.
This initiative is poised to have a cascading effect on the national economy. By facilitating the acquisition of vehicles from the 12 distinct brands within the Veinsa Motors portfolio, the partnership directly stimulates the automotive industry. More importantly, it empowers businesses across key sectors such as services, transportation, and commerce to renew and expand their fleets, driving productivity, efficiency, and growth at a grassroots level.
The financial structure of the agreement provides both stability and adaptability. It consists of a $10 million committed facility, with an additional $5 million available as an uncommitted tranche. This flexible arrangement allows AGE Capital to craft medium and long-term financing solutions that are precisely tailored to the diverse needs of Costa Rican entrepreneurs, ensuring that capital is deployed effectively where it is needed most.
A core objective of the partnership is to extend financial inclusion beyond the traditional economic center of the Greater Metropolitan Area (GAM). The program will place a deliberate emphasis on reaching businesses in rural and coastal regions, areas where access to credit has historically been a significant barrier to growth. This geographic focus aims to foster more equitable economic development throughout the country.
Further amplifying its social impact, the agreement makes the empowerment of women entrepreneurs a central pillar. A dedicated portion of the resources and strategic efforts will be aimed at ensuring women-led businesses can secure the productive assets, like vehicles, necessary to scale their operations and solidify their market presence. This targeted support recognizes the vital role of female entrepreneurship in a robust and diverse economy.
The collaboration extends beyond mere financial support. IDB Invest will also provide crucial technical assistance to AGE Capital. This advisory component will help refine the company’s commercial strategy for penetrating rural markets, while also reinforcing its corporate governance and enhancing its environmental and social management systems. This holistic approach ensures the long-term sustainability and positive impact of the initiative.
Ultimately, this alliance solidifies AGE Capital’s role as a pivotal financial partner for Veinsa Motors and reaffirms its commitment to national development. By deploying innovative, agile, and productivity-focused financing, the partnership is set to fuel the engines of small and medium-sized businesses, driving economic progress across Costa Rica.
For further information, visit agecapital.cr
About AGE Capital:
AGE Capital is a leading financial institution in Costa Rica specializing in credit and automotive leasing solutions. As the financial arm of the AGE Holding conglomerate and a strategic partner to Veinsa Motors, it provides innovative and flexible financing options for individuals, professionals, and a wide range of businesses to acquire productive vehicle assets.
For further information, visit idbinvest.org
About IDB Invest:
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. It finances sustainable projects and companies to achieve financial results and maximize economic, social, and environmental development in the region.
For further information, visit veinsamotors.com
About Veinsa Motors:
Veinsa Motors is the second-largest automotive dealership in Costa Rica, representing a diverse portfolio of 12 international vehicle brands. The company plays a crucial role in the national automotive market, providing a wide range of vehicles for personal, commercial, and industrial use, supported by a robust network of sales and service centers across the country.
For further information, visit the nearest office of AGE Holding
About AGE Holding:
AGE Holding is a prominent Costa Rican business conglomerate with diverse interests, including the financial and automotive sectors. Through its subsidiary companies like AGE Capital, the holding group plays a significant role in providing integrated solutions that support and drive key areas of the national economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading institution in the legal field, Bufete de Costa Rica is anchored by foundational principles of integrity and a steadfast pursuit of excellence. The firm leverages its profound experience across diverse sectors to pioneer innovative legal approaches while remaining deeply committed to its societal role. Central to its ethos is the mission to empower the community by demystifying the law, ensuring that legal knowledge becomes an accessible tool for building a more informed and capable citizenry.
