FGI / PEAC loan

What it is

FGI and PEAC are government-backed guarantee funds for small and mid-sized companies. The fund covers part of the risk of the deal, standing in for the collateral the company does not have. In practice, it unlocks credit for a good company that was only held back by a lack of security.

This is the line I propose when the company's results are solid but the bank said no over collateral, a situation I saw many times from the inside.

When it makes sense

• The bank said no for lack of collateral, not for lack of results
• The company does not want to tie up a partner's property
• The rate on plain working capital came out too high because of perceived risk

How it works

• EligibilityI check company size, CNAE activity code and tax standing to see whether the company fits the line.
• Putting it togetherI structure the proposal the way the credit committee needs to read it.
• ApprovalI follow the review and answer the open items together with you.
• ReleaseDigital contract and release of the funds.

What you will need

• Revenue for the last 12 months
• Balance sheet and income statement
• Tax clearance certificates up to date
• 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.