Colombia: Building a Modern Secured Transactions System to Expand Access to Finance for MSMEs

Colombia transformed access to finance for MSMEs by modernizing its secured transactions system with support from IFC and SECO. Law 1676 of 2013 enabled businesses to use movable assets, including equipment, inventory and receivables, as collateral, supported by a centralized online registry. Between 2015 and 2024, the system facilitated 345,679 non-vehicle secured-loan registrations worth $161.3 billion. IFC also supported RADIAN, Colombia’s electronic invoice registry, which financed 5.67 million invoices worth $32.4 billion by 2025. The reforms strengthened lender confidence, expanded financing options for smaller businesses, and positioned Colombia as a regional model for secured transactions reform.