Working capital

What it is

A loan with fixed installments, approved on the company's revenue and track record, with no property or vehicle required as collateral. It is the most direct credit line there is for a business, and the one I see most on my desk.

The gap between the best and the worst offer for the same company is usually wide. That is why I take the same deal to several institutions at once, instead of accepting the first one.

When it makes sense

• Seasonality is known and cash gets tight in predictable months
• A large order came in and there is not enough capital to produce it
• Payroll weighs more than incoming receivables in the month
• The limit at the current bank ran out and the cost of revolving credit jumped

How it works

• Reading the numbersRevenue, current debt, seasonality and whatever collateral already exists.
• Choosing the institutionsI select the ones with appetite for your size and sector that week.
• Offers comparedYou get rate, term, grace period and total effective cost (CET) side by side.
• SigningDigital signature and follow-up until the money lands in the account.

What you will need

• Revenue for the last 12 months
• Balance sheet and income statement for the last fiscal year
• List of current debts
• CNPJ registration certificate (Brazilian company tax ID) and articles of association

The list can change with the institution and the size of the deal. I confirm what is actually required before you gather a single document.