Working Capital Financing for Companies
Working capital financing is always necessary! Who owns business knows the constant need for financial movement and which one time or another needs money to capitalize on. At this time it is good to take working capital , a type of financing for short-, medium- or long-term companies to meet shortfalls in cash, is usually used to reorganize the financial flow or much used to develop new projects and projects.
In financing for working capital the forms of payments (repayment) are diverse, the borrower of the credit can choose to pay in 1, 2, 6, 12, 24, 48 or more installments, it all depends on the entrepreneur’s need and the flow of cash and the credit line.
Finance Working Capital, what are the guarantees?
The entrepreneur or company may offer as collateral, machinery, equipment and vehicles through Fiduciary Alienation, Mortgage, Pledge of Receivables, Commercial Lien, Credit Assignment, Pledge of Limited Partnership Shares, Pledge of Shares, Pledge of Securities / Pledge of Rights Receivables, Duplicates, Pre-dated Checks among others. In other articles we talk about loan to open company, how you take part in the 3 FINEP credit programs for companies, and how to get credit from PROGER to company. If you are capturing financial resources check out how to get loan for Microentrepreneur to invest.
What are the advantages of working capital?
1 -) It is not necessary to prove the destination of the resources; 2 -) The contracting of the loan is totally uncomplicated; 3 -) Payment deadlines can be negotiated according to need. The movement of resources is carried out by means of transfers to the current account of the contractor (company). The working capital funding limit is set according to your company’s ability to pay.
Most commercial banks offer a huge range of products and services to finance working capital for companies, among them there are some key differences in the release of financing such as: deadlines; fees and interest (cost); taxation of taxes; guarantees; criteria and operating rules of each one: concentration of credit with customers, guarantees required, etc .; and also restrictions imposed by the Central Bank of Brazil.
In general the working capital loan or loan has lower interest rates when collateral is given as collateral in a ratio of 120 to 150% of the principal borrowed. When the working capital loan guarantee involves other collateral, such as guarantor, real estate mortgages and promissory notes, interest rates are higher.
What is Working Capital?
Financial transactions involving money lending , interest financing, investment credit can be called working capital. They are offered in local currency, in Brazil the currency is the Real (R $). The terms are variable between short or medium term, but it is also possible to take working capital in the long term.
Working capital is generally guaranteed through the use of receivables from specific contracts or diversified credit rights. This line of loan or finance for companies is intended to meet the specific needs of the type of segment of the trade. Working capital financing can be structured in such a way that repayment of the principal loan can be made in a single payment, or a pre-established repayment schedule is agreed.