High interest rates make it difficult for industries to finance, points out CNI research| Photo: Gelson Bampi/Fiep System

High interest rates are making it difficult for industry to obtain financing, according to a survey released this Wednesday (7) by the National Confederation of Industry (CNI). Other difficulties are access to short and medium-term lines, the requirements for real guarantees and the lack of lines adequate to the company’s needs.

According to CNI’s Economic Policy manager, Fábio Guerra, credit is more expensive and restricted, both for companies and for consumers, especially with banks more cautious in concessions. Among the companies that claimed to have tried to take out or renew credit, 19% were unable to do so, in the case of short or medium-term credit. And in the case of long-term credit, the percentage of frustration was 37%.

“We observe a more selective and demanding scenario for those seeking financial resources. This also explains the fact that about half of the companies have not tried to renew or seek new loans and a significant portion have renewed on worse or much worse terms. It should also be noted that a significant number of companies that tried to renew or contract credit were unable to do so”, says the economist.

Paying suppliers and employee expenses and purchasing raw materials was the main purpose of short and medium-term credit operations by 60% of companies, between September 2022 and February 2023. After working capital, 21% of companies indicated who needed the funds to invest, whether in machinery and equipment, installations or research and development.

In terms of long-term credit, 43% of industrial companies indicated that the resources were destined for investments (with 28% indicating investments in machinery and equipment, 13% in installations and 2% in research and development). Then, 28% of the industrial companies indicated working capital as the purpose of the resources.