The small entrepreneur may need the following credit and financing lines:

Capital for Investment

: resources to set up or to improve a business.

Working Capital

: resources to fill the cash gaps of the company, objectifying to meet the operational needs, as purchase of raw material, payment of taxes and wages.

Mixed Investment

: capital to supply the two previous situations: to supply the needs with investment and associated working capital, such as the purchase of raw material.

Credit Lines for Small-sized Companies

Bill discount

: operation performed by the banks that receive for a lower price the duplicates emitted by a company against its customers.

Check discount

: operation performed by financial institutions that receive for a lower price the future-dated checks received by the companies of its clients.

Working capital

: credit line offered by the banks to fill the cash flow needs of the company.

Working capital associated with investments

: aims to fill the needs with investment and associated working capital, such as the purchase of raw material to operate the bought equipment.

Factoring operation

: mechanism of mercantile development that makes possible the company to sell its credits generated for credit sales to a factoring company, resulting in the immediate receiving of these credits.

Machine and equipment acquisition

: financing lines for machine and equipment acquisition to improve the company production.

Creation, enlargement and improvement of installations

: financing lines for implantation of companies and for improvements in the existing companies.

Financing to exportation/importation

: the Exportation Financing Program (Proex).

Credit Institutions

Micro and small entrepreneurs can count on many credit institutions, as banks, credit cooperatives, factorings, financiers, ONGs of credit or microenterprise credit society.

Banks

There are governmental banks that transfer resources, such as FAT (Worker's Assistance Fund) and FNE (Constitutional Fund for the Northeast), and possess specific credit lines for micro and small companies. We can detach: Crediamigo and PROFAT (Bank of the Northeast), MIPEM FAT and BB Giro (Bank of Brazil) and CEF Giro (Federal Savings Bank).

Credit Cooperatives

When you are a cooperated or have conditions to become one. The credit cooperatives, although subject to differentiated legislation, perform the majority of the available credit operations in banks.

Factorings

Purchase of commercial papers (duplicates, promissory notes and future-dated checks) of other companies or physical person. This purchase is made with a discounting (10% or 20%, for example). The factorings pay in advance the value of the duplicates or future-dated checks, in order to give to the companies that withheld these documents immediate availability of money. It is an excellent option for micro and small companies.

Financiers

For companies that have a good cadastre and an excellent co-signer and/or future-dated checks of customers with good cadastre and for bearer of guaranteed checks that can be cashed or that can guarantee the desired financing operation.

ONGs of Credit

It is granted when the entrepreneur can prove that its formal or informal business functions regularly for more than six months, that SERASA and SPC (two important Brazilian Credit Information Registries) don't have any negative information about him (such as unfunded, cancelled, stopped, stolen and lost checks, for example) and when he has documents, as identification card (RG), individual taxpayer identification card (CPF) and proof of address. The entrepreneur must have a guarantee, which can be: warrantor with a good cadastre and minimum income three times the value of the loan that he intends to plead, guarantee fund, etc.

Microenterprise Credit Society

Institutions authorized to function by the National Monetary Council and regulated by the Central Bank of Brazil that act with credit lines and similar procedure to ONGs of credit.