Learn All About Business Credit Lines

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Starting a business in Brazil is not an easy task, especially when you are a micro or small company. In this article, we will better explain one of the factors that cause this difficulty, how you can circumvent it and get great deals.

Bureaucracy and interest rate affect business emergence and growth

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Unfortunately in Brazil it still takes months to be able to start a business and those who suffer most from this delay are the micro and small business owners, who do not have the time, legal, accounting and financial advice necessary to help them in this stressful stage.

While in Finland a person can start a business in less than a day, in Brazil this deadline reaches 107.5 days, which puts us in the 123rd position in the ranking, according to a study by the World Bank. And to close a business, the bureaucracy is even worse: it takes an average of 4 years to perform such an action.

But if you are reading this article, it seems that you have already overcome this barrier. So now, let’s help you with tips that make it easy to get some business credit online.

How to Find the Best Credit Line for Business

Here goes the saying: who seeks, finds!… Calm down! We know that the entrepreneur does not always have time available to walk among the various financial institutions in order to find the best condition to get a loan on advantageous terms, so we will present some data that can save you time and money.

Receivables Anticipation

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This type of transaction is intended for entrepreneurs who are in need of money in the short term, as interest rates vary between 3% and 12% per month, and works similar to the anticipation of income tax (IR) and the thirteenth salary.

The benefits of doing so are that you are not making a loan itself, but only using something that is already in your business (a postdated credit card payment or credit card purchases, for example); and also have faster release of resources. This helps you gain greater advantage from your partners and suppliers when purchasing a new product or service.

Please note: Choose to anticipate receivables from customers you know will not default on payment so that the lending financial institution does not place restrictions on your business. Another reminder we give is that you always study the profile, history and reputation of your consumers.

Lastly, as interest rates vary, research the amounts charged among the various financial institutions and try to parcel out the receivables prepayment in the fewest months. This way, the condition is much more advantageous.