What is BNDES?
In this post, you will understand everything you need to know about BNDES Financing. And, for that, it is worth introducing a little of the history of this bank. Founded in 1952, National Bank for Economic and Social Development (BNDES) is one of the largest development banks in the world. It is a central tool of the Federal Government for long-term financing and investment in all segments of the Brazilian economy.
The entity supports entrepreneurs of all sizes, including individuals, in carrying out their modernization and expansion projects and in establishing new businesses. Always guided by the potential for generating jobs, income and social inclusion for Brazil.
BNDES FINANCING
BNDES Microcredit
Microcredit is the granting of small-value loans to formal and informal microentrepreneurs, typically without access to the traditional financial system.
Who is entitled?
Individuals and legal entities that undertake small-scale productive activities, that is, those that obtain gross revenue equal to or less than R$$ 360 thousand in each calendar year, may obtain resources from BNDES Microcredit.
The resources are always intended to finance working capital and/or fixed productive investments, such as civil works, purchase of new and used machinery and equipment, and purchase of inputs and materials. Find out more.
BNDES Finame
Objective
Financing of production and acquisition of national machinery and equipment accredited by BNDES.
Process
In general terms, the simplified financing flow follows these steps, with some variations, depending on the line:
- The interested party chooses the machine or equipment they wish to purchase and checks whether the item is on the list of equipment eligible for financing by BNDES Finame. This can be checked on the BNDES website.
- The interested party seeks out an accredited financial agent and requests financing for the equipment/machine. Financial agents are financial institutions authorized to transfer BNDES resources, and may be commercial banks, development banks, development agencies or credit unions, etc.
- The financial agent analyzes the request and the interested party's financial situation and, if the operation is approved, forwards the financing request to BNDES.
- BNDES evaluates the request, checks whether it complies with the rules and, if so, authorizes the financing.
- The agent authorizes the manufacturer or authorized distributor to deliver the machine or equipment to the buyer/financed party.
- The manufacturer or authorized distributor delivers the machine or equipment to the buyer.
- BNDES transfers the amount to be financed to the financial agent (upon request and presentation of the invoice).
- The financial agent transfers the amount to the manufacturer or authorized distributor of the equipment.
BNDES FGI
Guarantee for your business
The BNDES FGI aims to facilitate the obtaining of credit by micro, small and medium-sized companies, as well as individual entrepreneurs and independent truck drivers, thus encouraging them to grow and modernize.
When applying for credit, smaller companies and entrepreneurs often encounter difficulties in meeting the guarantees required by financial institutions. Such difficulties often make it impossible to obtain the desired financing, or lead to the approval of financing under less favorable conditions than ideal, considering variables such as grace and repayment periods, interest rates and down payment amounts.
This is where the BNDES FGI fits in. By complementing the guarantees offered by companies, the BNDES FGI increases the chances of approval of credit applications, thus being a real alternative to support the growth ambitions of these companies. Furthermore, the BNDES FGI guarantee, as it is well-regarded by financial institutions, also allows them to approve financing under better conditions, for example: with longer terms, lower down payment requirements and even lower interest rates.
This is a set of advantages that the BNDES FGI guarantee provides. And there are several investments that can benefit. Some examples are: working capital, acquisition of national machinery and equipment, expansion projects of production units, acquisition of national software, production aimed at export, among others. Find out more.
Who can be a client?
Each BNDES financing instrument is intended for one or more client profiles, including:
- companies based in Brazil;
- individual entrepreneurs (individuals with CNPJ)
- individual microentrepreneurs (legal entity);
- public entities or bodies, of direct and indirect administration, of the Federal, State, Municipal and Federal District spheres;
- private law foundations and associations;
- cooperatives;
- individuals domiciled and resident in the country, as long as they carry out economic activities and are duly registered, such as truck drivers and rural producers;
- consortia and condominiums that carry out productive activities; and
- unions and clubs
To request financing with BNDES resources, the client must meet the following minimum requirements:
- be up to date with fiscal, tax and social obligations;
- present a satisfactory record;
- have the ability to pay;
- have sufficient guarantees to cover the risk of the operation;
- not be under credit recovery regime;
- comply with legislation relating to imports, in the case of financing for the import of
- machines and equipment;
- and comply with environmental legislation.
Individuals or legal entities that: cannot be beneficiaries of BNDES financing:
- have defaulted with the BNDES System or are part of an Economic Group that
- have defaulted with the BNDES System;
- are responsible for a protested title (unless, at the discretion of BNDES, the protest is justified);
- are included in legal proceedings that, at the discretion of BNDES, may compromise the ability to fulfill its obligations to BNDES;
- have registration records indicating persistent non-compliance or restrictions on their suitability;
- or are in the process of bankruptcy, receivership or judicial or extrajudicial recovery.
Legal entities whose controllers fall under the restrictions above will also not be able to benefit.
Customer size classification
BNDES classifies its clients according to size, which allows it to act in a way that is appropriate to the characteristics of each segment, by offering specific lines, programs and conditions. Support for micro, small and medium-sized companies, for example, is considered a priority by BNDES, offering special conditions with the main purpose of facilitating these companies' access to credit.
The size classification is carried out according to the Gross Operating Revenue (ROB) of companies or according to the annual income of individual customers.
CLASSIFICATION OF ANNUAL GROSS OPERATING REVENUE OR ANNUAL INCOME
- Microenterprise Less than or equal to R$ 360 thousand;
- Small company Greater than R$ 360 thousand and less than or equal to R$ 4.8 million;
- Medium-sized company Greater than R$ 4.8 million and less than or equal to R$ 300 million;
- Large company Larger than R$ 300 million.
Observation: when the company is part of an economic group, the size classification will consider the group's consolidated GOR. Direct public administration entities are not classified by size and, for financial conditions purposes, are equated to large companies.
How to apply
The client can request financing directly from BNDES (direct support) or through accredited financial institutions (indirect support). The form of support depends on the purpose and amount of financing. In indirect support, BNDES partner financial institutions act as intermediaries in granting financing, assuming the credit risk (risk of non-payment by the client) in whole or in part. Since BNDES does not have branches, indirect support allows its resources to reach clients in all municipalities in Brazil through financial institutions.
In general, all financing operations for the isolated purchase of machinery and equipment, as well as financing of less than R$10 million for projects involving the implementation, modernization and expansion of enterprises, are carried out in the form of indirect support. Financing exceeding R$10 million may be requested directly from the BNDES.
But be careful: BNDES does not recognize or accredit consultants (individuals or legal entities) as intermediaries to facilitate, expedite or approve credit operations.
To find out what “direct support” and “indirect support” are, click here.
What can I finance through BNDES?
- investments for the implementation, expansion, modernization and/or recovery of projects, infrastructure, companies and public and private institutions, including studies, projects, civil works, installations, training, among others;
- production or acquisition of new machinery and equipment (including utility vehicles)
- rivers, buses, trucks and aircraft), manufactured nationally and accredited by BNDES; new goods, inputs, services, software;
- working capital;
export of national goods and services; - and acquisition of imported goods and services and internalization expenses (through specific lines and conditions for this purpose), provided that there is proof of the non-existence of a similar national product.
See the full list of what can be financed at BNDES Finem.
And know everything about the financing of machinery and equipment and what the BNDES no finance, clicking here.
Other information
About actions related to the coronavirus pandemic: find out more.
Online services: find out more.
To apply for your financing, access.
Billing information for customers: access.
Contact
Customer Service Center 0800 702 6337
Information about BNDES products, services and other operational matters. The service is available from Monday to Friday (except holidays), from 8 am to 8 pm.
Connections from abroad: +55 (21) 2052- 6337
Ombudsman 0800 702 6307
Complaints, suggestions and thanks/compliments in the first instance or, even, complaints, requests and unresolved queries through the Customer Service Center, from Monday to Friday (except holidays), from 8 am to 8 pm.
SIC 0800 887 6000
Requests for public information about BNDES's activities, covered by the Access to Information Law. Service hours are Monday through Friday (except holidays), from 8 a.m. to 8 p.m.
Audit Committee
Complaints or information related to the activities of the Audit Committee, such as non-compliance with legal and regulatory provisions; fraud, accounting irregularities, failure to observe internal controls, and the performance of internal or independent auditors. The service is available from Monday to Friday (except holidays), from 10 am to 6 pm. Learn more.
For addresses and other contact channels, visit.
Before hiring
Before making any final decision, it is worth finding out all the details of each contract. Understand the bank's conditions and the available alternatives. As well as gain clarity on whether this is really the best time to do so.
Here at Digital Seguro we have a wide variety of articles and news that cover everything from everyday events to extensive and dense content, the aim of which is to keep you equipped with all the information you need to make the best decision for your specific situation. For more on financing.
Our financing and loan simulation page.
See also: Banco BV Financing: everything you need to make the right choice.