The BNDES and the fintechs are working on proposals to bring the R $ 5 billion financial aid announced to the small entrepreneur, announced as one of the measures to mitigate the effects of the coronavirus pandemic on the economy. On the table, there are three different discussions: allowing the fintechs to pass on the resources of the development bank, as well as the banks; make BNDES an investor in these companies through investment funds; and offer specific bank financing lines to fintechs.
A consensus between the parties lies in the fact that discussions can still take from one to two weeks, while trying to find ways to operationalize all these ideas that arrive to resolve the issue of lack of liquidity in the market and the escalation of credit risk. .
So far, the understanding is that the BNDES will provide funds for granting credit, but it is not yet clear whether the National Treasury will participate. "We are seeing BNDES enter as a normalizing agent in the market with 'patient' money - which it can lend today, but does not need to have a return soon," says Rafael Pereira, president of the Brazilian Digital Credit Association (ABCD).
On March 26, the National Monetary Council (CMN) authorized the fintechs to pass on BNDES loans. Two days later, the bank's president, Gustavo Montezano, said that these companies would help transfer a total volume of resources of R $ 5 billion destined for working capital for small businesses, which in his opinion would increase competition in the market.
The authorization, however, was granted only to Direct Credit Societies (SCD), which are platforms licensed by the regulator to make loans with their own resources and which, according to the Central Bank itself, add up to 19 with permission to operate in the parents. Representatives of fintechs try to increase the number of companies that can participate in the program, according to Valor reported last week.
Sources heard by Valor said that the model that makes fintechs transfer funds from BNDES, widely used with banks, has some limitations. First, the risk of the transaction rests with the repeater itself, and some of them would not be willing to guarantee the transactions or would tend to raise the interest rate in the face of increased market risk.
"If the BNDES took a risk or if it had a shared risk, then we would have much more appetite and increase the approval of customer orders," said an executive at a fintech.
Another issue is that the net worth of these companies is very low. To give you an idea, SCDs have a minimum requirement of R $ 1 million. As the BNDES analyzes the credit of the transfer agent to make the funds available, and takes into account the equity, very small fintechs would have limited capacity for on lending.
Another model that is being discussed is the creation of a credit rights investment fund (FIDC), invested by BNDES, but with independent management, which would make investments in fintechs based on a more professional choice. Already used to operating with investment funds, fintechs will be able to raise more robust volumes to lend to customers.
In the opinion of the interviewees, the possibility of fintechs taking out financing from BNDES to lend directly to small businesses would also allow them to access larger volumes.
Fintechs still try to include individuals in the proposal, since this figure is confused with that of a legal entity in smaller businesses. Creditas, which operates as a SCD, would be interested in participating in the program with the BNDES and defends this expansion of the program.
“In order to achieve the maximum possible impact on credit injection in the population, it is important that this transfer can also be applied to the individual who has a productive activity, because there are many freelancers and professionals who do not use the figure of the legal entity, but need to help right now, ”said Sergio Furio, president of Creditas.
In another front of contact with the fintechs, the BNDES also asked the crowdfunding platforms to present models in which the development bank could help with investment in business across the country. In this case, the BNDES would contribute one part and the individuals who normally invest in these platforms would keep the other. In total, there are 26 crowdfunding platforms registered with the Securities and Exchange Commission (CVM).
The BNDES and the fintechs are working on proposals to bring the R $ 5 billion financial aid announced to the small entrepreneur, announced as one of the measures to mitigate the effects of the coronavirus pandemic on the economy. On the table, there are three different discussions: allowing the fintechs to pass on the resources of the development bank, as well as the banks; make BNDES an investor in these companies through investment funds; and offer specific bank financing lines to fintechs.
A consensus between the parties lies in the fact that discussions can still take from one to two weeks, while trying to find ways to operationalize all these ideas that arrive to resolve the issue of lack of liquidity in the market and the escalation of credit risk. .
So far, the understanding is that the BNDES will provide funds for granting credit, but it is not yet clear whether the National Treasury will participate. "We are seeing BNDES enter as a normalizing agent in the market with 'patient' money - which it can lend today, but does not need to have a return soon," says Rafael Pereira, president of the Brazilian Digital Credit Association (ABCD).
On March 26, the National Monetary Council (CMN) authorized the fintechs to pass on BNDES loans. Two days later, the bank's president, Gustavo Montezano, said that these companies would help transfer a total volume of resources of R $ 5 billion destined for working capital for small businesses, which in his opinion would increase competition in the market.
The authorization, however, was granted only to Direct Credit Societies (SCD), which are platforms licensed by the regulator to make loans with their own resources and which, according to the Central Bank itself, add up to 19 with permission to operate in the parents. Representatives of fintechs try to increase the number of companies that can participate in the program, according to Valor reported last week.
Sources heard by Valor said that the model that makes fintechs transfer funds from BNDES, widely used with banks, has some limitations. First, the risk of the transaction rests with the repeater itself, and some of them would not be willing to guarantee the transactions or would tend to raise the interest rate in the face of increased market risk.
"If the BNDES took a risk or if it had a shared risk, then we would have much more appetite and increase the approval of customer orders," said an executive at a fintech.
Another issue is that the net worth of these companies is very low. To give you an idea, SCDs have a minimum requirement of R $ 1 million. As the BNDES analyzes the credit of the transfer agent to make the funds available, and takes into account the equity, very small fintechs would have limited capacity for on lending.
Another model that is being discussed is the creation of a credit rights investment fund (FIDC), invested by BNDES, but with independent management, which would make investments in fintechs based on a more professional choice. Already used to operating with investment funds, fintechs will be able to raise more robust volumes to lend to customers.
In the opinion of the interviewees, the possibility of fintechs taking out financing from BNDES to lend directly to small businesses would also allow them to access larger volumes.
Fintechs still try to include individuals in the proposal, since this figure is confused with that of a legal entity in smaller businesses. Creditas, which operates as a SCD, would be interested in participating in the program with the BNDES and defends this expansion of the program.
“In order to achieve the maximum possible impact on credit injection in the population, it is important that this transfer can also be applied to the individual who has a productive activity, because there are many freelancers and professionals who do not use the figure of the legal entity, but need to help right now, ”said Sergio Furio, president of Creditas.
In another front of contact with the fintechs, the BNDES also asked the crowdfunding platforms to present models in which the development bank could help with investment in business across the country. In this case, the BNDES would contribute one part and the individuals who normally invest in these platforms would keep the other. In total, there are 26 crowdfunding platforms registered with the Securities and Exchange Commission (CVM).