- In this type of line, banks and acquirers assess the flow of payments through physical terminals (POS) to determine the payment capacity of each company;
- The loan is charged as a percentage of the company’s future sales, and no other collateral is required.
The Brazilian government is developing one more credit line to help smaller companies (with annual sales of up to BRl 360,000) to overcome the COVID-19 crisis. Aimed at those who do not need so many resources, this new line would be based on receivables from card sales, with a tax cut mechanism aimed at good payers. As anticipated by Flávia Furlan, from Valor Econômico newspaper on Sunday, the modality would lend up to BRL 10 billion, coming from the National Treasury.
Businessmen have complained that the modalities available since the beginning of the pandemic are not reaching those who need it most. This new credit line would be the government’s fourth attempt to help companies survive the crisis.
In this type of line, banks and acquirers assess the flow of payments through physical terminals (POS) to determine the payment capacity of each company. The loan is charged as a percentage (up to 5%) of the company’s future sales, and no other collateral is required.
To access this credit line, companies would need to have registered an average monthly flow of BRL 3,200 and BRL 30,000, from November 2019 to March 2020. In general, they would be able to borrow up to twice this monthly average.
