Refinancia

About Refinancia

Established in 2005, Refinancia S.A.S. operates as a specialized financial services firm in Colombia, with its main office in Bogotá D.C. The company was founded by Kenneth Mendiwelson, who envisioned a sophisticated approach to the vast non-performing loan (NPL) industry in the country. Mendiwelson's professional journey, which included roles at Scottish Enterprise, Braxton Associates, and Fidelity Investments, provided him with a foundation in complex financial projects and business strategy, shaping his entrepreneurial path with Refinancia. The firm pioneered the acquisition of bad debt in Colombia and has since evolved into a robust loan servicing company.

Refinancia's core business involves purchasing portfolios of consumer and mortgage non-performing loans directly from major banks. It then services these assets, employing advanced analytical capabilities and proprietary data to predict credit recovery and manage collections effectively. The company's approach marked a shift in the collections industry by treating individuals as clients rather than debtors, focusing on providing dignified solutions to help them restore their financial standing. Over its history, Refinancia has purchased more than 200 NPL portfolios, serving over 3 million customers.

A key aspect of Refinancia's business model is offering these NPL pools as alternative investment products. The firm values and packages the loan portfolios, presenting them to sophisticated institutional investors and private wealth clients seeking attractive returns. Beyond its primary NPL business, the company also functions as a third-party servicer for banks and fintechs, managing portfolios of loans in arrears. Revenue is generated through multiple streams, including a percentage of collections, asset under management (AUM) fees, and performance bonuses. The firm has established significant partnerships, including an alliance with Encore Capital Group, a global leader in debt management, and helped found COLCOB, the Colombian collection industry association. In 2011, the company expanded its operations to Peru and has since grown to over 600 employees.