Mexican small and medium-sized enterprises (SMEs) are increasingly turning to asset-based lending, or “empeño,” to navigate cash flow challenges, according to recent data from the Asociación de Emprendedores de México (ASEM). While traditionally viewed with stigma, this form of financing is gaining acceptance as a pragmatic solution for businesses facing delayed customer payments and difficulty accessing traditional credit.
ASEM data indicates that it takes Mexican SMEs an average of 2.4 years to achieve profitability. During this period, ongoing expenses, including payroll and supplier invoices, create persistent financial pressure. A significant contributor to these pressures is late payment from clients, a problem affecting 28% of businesses, ASEM reports.
“There’s a myth that entrepreneurs won’t consider asset-based lending, but those who do are often the most agile,” stated Eduardo Dondé, president of the Fundación Dondé. “Different types of loans suit different moments, and this can be a viable emergency option when a client delays payment and the SME faces immediate obligations.”
The reliance on asset-based lending is often driven by the financial vulnerabilities of SMEs, which typically have less diversified income streams and limited financial planning expertise. Late payments from customers average 62 days, according to ASEM, pushing businesses to consider leveraging their assets. Dondé suggests that, when managed effectively, this can be a sensible alternative to business failure.
Access to traditional financing remains a significant hurdle for Mexican SMEs. According to ASEM, three out of ten businesses that are denied credit experience stunted growth. 17% are forced to cancel contracts with clients and suppliers, 13% must temporarily halt operations, and 8% are compelled to reduce their workforce.
In November 2025, ASEM partnered with WhatsApp to offer free virtual courses aimed at helping SMEs utilize WhatsApp Business tools to improve sales and customer service, addressing a key factor in reducing the 59% business closure rate within the first three years, as highlighted in the 2024 Radiografía del Emprendimiento en México. The courses focus on automating messages, creating 24/7 support channels, and optimizing business management through the application.
Dondé encourages entrepreneurs to overcome the perceived taboo surrounding asset-based lending, framing it as a tool for accessing capital. “Empeño gives you the option to put your assets to work,” he said. The ASEM, a non-profit association representing over 20,000 entrepreneurs across Mexico, continues to advocate for policies that support the entrepreneurial ecosystem and improve access to financing.
In September 2024, ASEM expressed hope that proposals to generate savings of up to 12 billion pesos annually would be considered by the incoming administration of Claudia Sheinbaum. The association also lauded the approval of a prompt payment initiative for SMEs by the Chamber of Deputies as a positive step.