Brazilian digital bank Banco Inter will anticipate BRL 250 million ($47 million) in receivables at no cost to small companies and individual entrepreneurs that sold products or services by accepting credit cards, a measure to support businesses affected by the COVID-19 pandemic.
In Brazil, settlement times are usually longer than the global average. For example, if a consumer makes a purchase with a credit card, the firm may receive the payment a month later, so banks offer advanced settlement funding by charging fees and interest rates.
“By zeroing the cost of the operation, we provide important support so that retailers and traders – the most hardly hit by this situation – can continue to function and maintain jobs”, said in a statement the commercial vice president of Banco Inter, Marco Túlio Guimarães.
The benefit is valid for customers with bank accounts opened for at least one year and for transactions to be received within 90 days. The entrepreneur who needs support for longer terms will pay an interest rate of 1% per month, for up to 36 months.The bank also announced another credit line of up to BRL 300 million ($56 million) for small and medium retailers in the malls managed by brMalls, a shopping center operator.