- Rates vary from 15%, 25% to 35% per year, depending on their risk profile;
- The firm also extended to all Brazilians the option of paying in installments purchases made without a card.
Mercado Pago, the fintech arm of Argentina-based e-commerce platform Mercado Libre, is launching a line of credit destined for working capital at small and medium enterprises in Brazil. Settlements are defined according to recipients’ revenue and rates vary from 15%, 25% to 35% per year, depending on their risk profile.
“An entrepreneur who borrows BRL 10,000 reais and fixes the installments at BRL 1,000 reais a month may find it difficult to pay them when the business sells little. With installments that vary according to the revenue, it is possible to follow the ups and downs of sales,” Pedro de Paula, director of Mercado Crédito, told Exame.
The credit line starts at BRL 100 and goes up to BRL 350,000. Mercado Pago, according to the news outlet, has BRL 660 million available to offer to SMEs.
Another news is that Mercado Pago extended to all Brazilians the option of paying in installments purchases made without a card, a modality that was previously active only for previously approved customers. Users can request a credit line to split purchases between BRL 200 to BRL 8,000 reais in up to 12 installments.
In addition, Mercado Pago launched the installment of bills such as electricity, water, telephone, and local taxes through its app – either with the credit card or with the financing line.