This out-of-the-box product uses the concept of Factoring in a very untraditional, Colombian way. Instead of buying regular bills at a discounted price, as traditional Factoring is conceived, we are buying judgments that the Colombian government is obliged to pay.

We buy, at a discounted price, the right to collect a non-recourse judgment against the Colombian Minister of Defense, National Police, General Prosecution, or other public entity, that has been placed by its claimant and won after a process that usually takes between 5 and 8 years. After the claim is decided in favor of the claimant, it is added into the national budget in a first-come, first-served basis, and its payment usually takes another 24 to 36 months, timeframe during which the government shall recognize legal interests.

It is precisely after the judgment is won by the claimant that we intervene, offering to pay the victorious claimant in advance for the right to receive the indemnification that the State is obligated to make, therefore earning the respective interests which will represent a high valuation, allowing all parties to win: the claimant, who shall finally receive the indemnification he’s entitled to and not having to wait any longer; and the investor, who will obtain a financial asset with a high and very secure profit margin.

And who are these claimants? The claimants are usually Colombian individuals, ordinary citizens or members of the army, who have been somehow affected by the internal conflict and that are lawfully entitled to file for an indemnification.