Microentrepreneurs continue to prioritize the value of the installment more than the interest charged

Loans

Behavior adopted when obtaining loans ignores best financial management practices and fails to reduce company debt by up to 58%

Despite constant calls to carry out careful assessments of the advantages and disadvantages present in the interest rates of credit lines offered by the market, a significant portion of small Brazilian entrepreneurs continue to have as their main criterion for taking on financing the old observation about the fact whether or not the payment fits into your pocket at the time of signing the contract. This is demonstrated by a survey carried out by the Support Center for Small Enterprises (Ceape Brasil). According to the survey, carried out with 242 microentrepreneurs, 23.1% of those interviewed, when taking out a loan, stated that the value of the installment is what weighs most in their decision.

“Despite this being a serious problem, we are not surprised that almost a quarter of entrepreneurs prioritize provision. Failing to see factors such as interest and financing term is still a cultural issue. Brazilians have become accustomed to paying a lot of interest and seem to not even care about the final amount”,

says Cláudia Cisneiros, executive director of Ceape.

In addition to the cultural issue, she cites as other factors that lead to this behavior the lack of financial education, the difficulty for entrepreneurs to obtain a loan, which leads to them being subjected to higher interest rates and the lack of financial planning.

“When the entrepreneur goes to a financial institution, be it fintech or traditional banks, they are faced with many obstacles in obtaining the loan, as they often do not have a sufficient history of payment, proof of income or sufficient guarantees to demonstrate that they are capable of complying. with its obligations”,

observe.

Fintechs’ proposal to expand the supply of credit to those outside the traditional market also appears to be insufficient and risky.

“As an institution that seeks to provide targeted productive microcredit, we see that, often, the entrepreneur takes the amount with the intention of paying off the debt, but does not plan adequately for the use of the resources and, for this reason, ends up defaulting. The amount granted needs to be accompanied by guidance that will lead the person to obtain a financial return greater than the interest charged”, he explains.

A recent experiment carried out by Serasa Experian in partnership with Sebrae, entitled Project Impulsiona, showed that small companies that implement processes related to financial management in their daily lives are able to reduce their debt level by up to 58%.

According to Serasa, in the last 24 months, 53% of SMEs used some form of credit, with the most popular options being loans and advances on credit card receivables. The company reports that 35% of entrepreneurs who participated in the survey said they use a loan once a year. The advance of credit card receivables generally presents a monthly recurrence (58%). Meanwhile, according to the organization, 47% of SMEs did not use any type of credit available on the market. However, of these 47%, almost half of them intend to apply.

Scratchs

By failing to check how much interest he will pay on the loan, the entrepreneur can, instead of solving the problem of lack of cash, deepen it.

“In desperation, many take out loans at high costs seeking to solve a momentary problem, but they forget that the installment will compromise part of the future income for a long time, which can generate a snowball effect, if they are unable to honor all their commitments. in the following months,”

warns Claudia.

She points out that it is precisely the absence of a long-term vision that leads to future default and the failure of a business. “The constriction of cash and the lack of energy to pay the bills are the main points that make people leave their dream of entrepreneurship to look for a job. Before choosing a value that will reduce future net income, it is necessary to analyze which factors led to the need to seek the value. Furthermore, the entrepreneur must keep in mind the cost of the money he sought. Is it worth it?”, she advises.

*With information from consultancy

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