The vast majority of investors in Mexico know what a SOFOM is, however, it is important to define that they are those corporations that are mainly in charge of carrying out all activities related to the granting of loans.
They must have a current registration with the National Commission for the Protection and Defense of Financial Services Users (Condusef) and are governed by the General Law of Credit Organizations and Auxiliary Activities (LGOAAC) and the general provisions issued by Condusef, depending on the type of SOFOM they are.
They can be “Regulated” or “Unregulated” and depending on their corporate name is that they must be written E.R. or E.N.R.
The benefits that a financial entity such as SOFOM, are multiple, but within the main ones we can find:
– Knowledge of the sector in which they place
– Faster and more efficient decision making than in banks due to less bureaucracy.
– Flexibility of operations.
– Commercially speaking, it is a very good option for people or businesses that for some reason do not have access to commercial banking.
– The attention received is personalized.
– Structuring of tailor-made credit solutions.
– Favorable regulatory framework.
Likewise, we can find tax benefits:
– The interest generated in transactions of the commercial loan portfolio as a financial entity, do not cause VAT (Value Added Tax).
– Losses due to irrecoverable loans are deductible.
– The credit portfolio is not included for the computation of ISR (Income Tax).
And Civil:
– The contracts in which credits, financial leasing and financial factoring are recorded, granted by SOFOMEs E.N.R., which are accompanied by the account statements certified by the accountant of the entity, will have the character of executive title and may be collected by the mercantile executive route.
– The SOFOMEs may assign the rights of credits with mortgage guarantee to another intermediary without the need of notifying the debtor, nor of a public deed, nor of registration before the Public Registry of Property and Commerce.
The above are some of the multiple services offered by SOFOMEs, if you have any doubt or if you are interested in incorporating a SOFOM, contact us, we have the best solution for your business.
Carolina Áviles
Gloria Ponce de León & Hernández
