Finance in Motion Introduces Tailored Working Capital Solutions

In 2024, our team identified a recurring structural gap among corporates in the agricultural sector in Latin America: strong demand for working capital financing but a lack of products suited to the realities of the primary/agri sector. Even leading producers and exporters – firms with robust track records and international footprints – often struggled to secure financing that matched their production and cash flow cycles. The reality: existing financial instruments came with rigid repayment terms, inflexible collateral requirements or short tenors that were misaligned with the needs of cyclical and climate-exposed industries and ended up posing a bottleneck for the further development of those companies.

Through our engagement with local companies, we found out that the capital structure of the eco.business Fund (EBF), provides the flexibility to offer much more attractive products and create win-win- situations.  

The win- businesses gain resilience and unleashed investments and growth, while we would secure a competitive edge for some of the most attractive borrowers in the region.

The solution: a tailored debt financing product designed to provide significantly more flexibility and certainty to the corporate borrower while incorporating smart risk mitigants for our funds. More concretely, the structure consists of a loan with a tenor that reflects the corresponding harvest cycle and cash flows, combined with an option to extend the facility under similar conditions. This is combined with smart security features that reflect the borrower’s balance sheet and cash flows.

Its core function lies in how it adapts to client performance: providing critical pre-season financing when operational liquidity is most needed, while allowing repayments or extensions based on evolving credit quality and performance. This dual-phase approach offers both agility and discipline, making it suitable for a broad range of investees and fund objectives.

In addition, the funding is combined with advisory and capacity building targeted to improve companies' environmental profile, enhance climate-resilience, and improve efficiency of operations.  

The development of this structure reflects Finance in Motion’s client-centric and market-driven approach. We focus on investments that matter, both from an economic and environmental perspective. Rather than emerging from isolated research cycles, the concept evolved through continuous engagement with clients, exporters and financial institutions throughout Latin America, identifying shared pain points across multiple countries, including Brazil, Colombia, Ecuador, Mexico, Paraguay and Peru. This process reinforced a key principle of our investment philosophy — proximity to the market and responsiveness to clients as engines of innovation.

In December 2025, through the eco.business Fund we executed the first debt transactions in Colombia, and Peru – both with mid to large size producers for export - which demonstrated the model’s versatility in supporting sustainable agriculture across diverse markets.

The tailored working capital structure therefore showcases Finance in Motion’s ability to help transform market challenges into practical, high-impact opportunities — creating products that address real needs while safeguarding investor interests. More broadly, it highlights how developing solutions at Finance in Motion is not about complexity, but about addressing client needs: listening to partners, understanding operational realities, and designing solutions that directly fill market gaps and drive measurable impact.

Read more on our transactions in Colombia, and Peru.  

Co-authored by:

Diego Stapf, Portfolio Manager, Eco.business Fund

Thomas Samuel, Senior Officer, Investment Management