Post by xyz3800 on Feb 28, 2024 2:39:30 GMT -6
The conduct and management of companies' business activities often comes up against a problem known to everyone: financing. This is an issue inherent to any type of economic enterprise, regardless of its size, but which, without a doubt, affects small business companies even more considerably. Professionals and entrepreneurs often come together to develop ideas or projects with enormous potential, but which often end up not even starting or losing steam due to the lack of capital of the parties involved, as the growth of these companies often ends up being linked to their own financial power or that of its partners [1] . 2. Overview of investments Most commonly, when thinking about financing business companies, especially small ones, the search for lines of credit in banks comes to mind, or, more recently, especially in the world of startups , the search for an angel investor.
However, both options have impacts on the financial health or future of societies that raise certain questions and that deserve to be highlighted. The first option, of turning to institutions seeking some form of financing, is undoubtedly the one that brings more risks and costs to a company. While interest rates for legal entities in Brazil have fallen in recent months, reaching the lowest level in the last five years [2] , they are still quite high. On Exit Mobile Number List average, there can be an annual interest rate above 50%, which makes the “price” of financing significantly more expensive. Furthermore, various charges are levied on the amounts lent by banks to business companies, which make up the Total Effective Cost (CET) [3] of an operation. The CET corresponds to the index that considers all charges, fees, taxes and expenses incurred in credit operations.
The main cost of the credit operation is the interest rate charged by the financial institution. However, when taxes, tariffs, insurance, costs related to contract registration and other expenses charged in the operation are added, the real rate of the operation increases. The tax levied on this type of operation is the Tax on Credit, Exchange and Insurance Operations or those relating to Securities or Securities (IOF), which has as its triggering event the disposal of the contracted amount to the borrower and, as taxpayer, natural persons or legal borrowers. In the case of legal entity borrowers, the IOF is levied at a rate of 0.0041% per day on the amount delivered or made available to them and at an additional rate of 0.38%, regardless of the term of the operation, whether the borrower is an individual. or legal entity. Along with these charges, financial institutions usually link the financing of a company with the need to present guarantees of the most diverse nature.
However, both options have impacts on the financial health or future of societies that raise certain questions and that deserve to be highlighted. The first option, of turning to institutions seeking some form of financing, is undoubtedly the one that brings more risks and costs to a company. While interest rates for legal entities in Brazil have fallen in recent months, reaching the lowest level in the last five years [2] , they are still quite high. On Exit Mobile Number List average, there can be an annual interest rate above 50%, which makes the “price” of financing significantly more expensive. Furthermore, various charges are levied on the amounts lent by banks to business companies, which make up the Total Effective Cost (CET) [3] of an operation. The CET corresponds to the index that considers all charges, fees, taxes and expenses incurred in credit operations.
The main cost of the credit operation is the interest rate charged by the financial institution. However, when taxes, tariffs, insurance, costs related to contract registration and other expenses charged in the operation are added, the real rate of the operation increases. The tax levied on this type of operation is the Tax on Credit, Exchange and Insurance Operations or those relating to Securities or Securities (IOF), which has as its triggering event the disposal of the contracted amount to the borrower and, as taxpayer, natural persons or legal borrowers. In the case of legal entity borrowers, the IOF is levied at a rate of 0.0041% per day on the amount delivered or made available to them and at an additional rate of 0.38%, regardless of the term of the operation, whether the borrower is an individual. or legal entity. Along with these charges, financial institutions usually link the financing of a company with the need to present guarantees of the most diverse nature.