EFactor Network

About EFactor Network

EFactor Network operates as a financial technology firm specializing in supply chain finance and electronic factoring. Founded in 2009 by Hector de la Garza and his partners, the company is headquartered in San Pedro Garza Garcia, Mexico. De la Garza, who serves as CEO, brought extensive experience from key roles in supply chain finance and business development at financial institutions like Grupo Financiero Banorte, Bancomext, and NAFIN. His background in finance shaped the company's core mission: to help large buying organizations extend payment terms while simultaneously providing their suppliers with the option to receive early payment at favorable rates.

The company's business model centers on its multi-bank, multi-currency online platform that connects large corporate buyers, their suppliers (primarily SMEs), and a network of financial institutions. This marketplace facilitates reverse factoring, where suppliers can sell their approved invoices for early payment based on the buyer's creditworthiness, thus injecting liquidity into the supply chain. EFactor Network generates revenue through servicing fees for managing the financing programs, while the funding partners—over 40 banks and non-bank institutions—earn a return from a small discount on the financed invoices. This structure provides suppliers with access to more competitive financing rates than traditional factoring.

The platform serves a vast network of over 20,000 companies, including more than 200 corporate buyers and their suppliers across more than 30 countries. A significant milestone was the June 2018 Series A funding round, where the company raised $10 million from investors including the International Finance Corporation (IFC) and Dalus Capital to fuel its expansion. Since its inception with a $7 million operational volume, EFactor Network has facilitated over $40 billion in cumulative transactions, closing 2023 with $7 billion for the year.