The greatest difficulties in anticipating receivables and accessing credit

The moment is of global crisis due to the COVID-19 pandemic. And when commercial operations are interrupted, those who suffer the most are micro, small and medium-sized companies , which do not work with a high volume of cash and therefore need to access sources of credit and achieve agility in anticipating receivables.

But the current scenario is not facilitating this access. Even with the large increase in companies' demand for credit, and with the release of R$ 1.2 trillion to financial institutions made by the Central Bank right at the beginning of the crisis, there are several difficulties in anticipating receivables and releasing funds.  

To better understand the scenario, check out why companies really need credit right now and how best to help them.

There was a significant increase in companies' demand for credit and in the difficulty of accessing it.

In the midst of the new coronavirus pandemic, the Central Bank announced that financial institutions registered an increase of 61.4%, between March 9 and April 3, 2020, in credit concessions to legal entities, making the comparison with the same range of 2019.

The data take into account free operations, that is, those that do not use resources from the savings account or from the National Bank for Economic and Social Development (BNDES).

Main difficulty: banks began to ask for more guarantees from retailers

Due to the unknown risk of the crisis we are experiencing, the big banks – even with the entire amount released by the Central Bank – maintained their interest rates and, to make the situation even more difficult, increased their guarantee requirements.

According to interviews by Valor Econômico with small and medium-sized companies, there are several reports that the money is not getting where it has to go. It is also worth noting that the stoppage of sales, with the closure of trade, reduced the availability of card receivables for companies.

If the modalities offered by banks are the same as those offered before the crisis, including using the same interest rates, it is clear that this does not help SMEs at the current time.

Fintechs propose to solve the bottlenecks of the traditional banking system

This lack of adequacy and difficulties generated in the attempt to access credit via the traditional banking system is not new in the country. In 2019, PwC conducted a study on credit fintechs and found among its respondents that there are a number of bottlenecks that these companies can resolve.

These bottlenecks range from the need to obtain agility in anticipating receivables, with faster and less bureaucratic credit approval (86%), passing through better payment conditions (67%) and even increasing the credit limit offered ( 42%).

Source: PwC | Fintech Credit Survey 2019

With the changes that are taking place and the increase in digital companies that provide financial services, techfins that can solve this series of problems generated by banks also stand out.

• Read also : Understand the emergence of techfins in Brazil

Small and medium-sized companies need working capital and credit options such as prepayment of receivables

At this point, there should be no doubt that access to credit and other ways of achieving agility in anticipating receivables are fundamental for the survival of companies.

The Panorama PMEs study: the impacts of COVID-19 and the steps to recovery , carried out by PEGN, Pesquisa Digitais and Endeavor with Brazilian SMEs in May 2020, found that 77.7% of the businesses consulted had already had a negative impact on the its income during the crisis.

But the problem goes further than that. According to data from the same study, 52.4% of companies only have enough cash to maintain operations for the next 6 months. This means that several small and medium-sized companies are at serious risk of not being able to sustain themselves until the end of the year. And access to credit could change that story.

Estimated time (in months) that SMEs can operate with their current cash (Source: Panorama PMEs Study )

With all this panorama, it is easy to understand the current need and understand that in this difficult scenario it is important to look for alternatives in the market.

Sky.One proposal is that management ERPs go even further ahead in this recovery, connecting to Sky.Simple , an intelligence layer that integrates financial institutions and companies.

With this action, ERP customers are able to access financial services much more easily, connecting each user with the various partner financial institutions to make credit available to companies.

If you want to support this market and take this important step, talk to one of our specialists now and learn about all the possibilities that Sky.Simple can provide for you and your customers .

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