A guaranteed account, when used responsibly, can be a solution for business cash flow. Read on to find out all the details about this financial product!
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Did you know that small businesses have the highest mortality rate in Brazil?
According to the data from Sebrae, one of the main reasons is the lack of working capital. In addition, about 34% believe that if they had obtained a business loan they would have avoided closure.
For this reason, in addition to a good business plan, the entrepreneur also needs to have knowledge about the financial solutions available on the market.
And today we are going to talk about one of them: the guaranteed account – a type of account where the entrepreneur can get quick money and in some cases can even put up accounts receivable as collateral.
At first glance, there are excellent opportunities, such as the BB or Santander Guaranteed Account. But that's not all, we also have other options for your business to avoid being part of this disastrous rate.
If you are considering acquiring financial products to improve the quality of your company, an account with a credit limit – when used responsibly – is an excellent opportunity.
But what is an overdraft limit? What are the advantages? Are there any disadvantages?
Want to find out the answers? Continue reading and learn everything about the subject, just watch a spoiler about the content:
- What is an escrow account limit?
- What is the difference between a guaranteed account and an overdraft?
- What is a corporate guaranteed account?
- The best options in the business credit market;
- Escrow Account: Advantages and disadvantages.
What is an escrow account limit?
At first glance, the guarantee account limit is a pre-approved credit available for the customer to use whenever necessary. This limit is very similar to an overdraft.
However, there are some fees charged on top of the price, such as: CDI rate, pre-fixed interest rate and IOF.
The product is a relief in stressful times. Credit is released very quickly and the consumer can use the money within a few hours.
What is the difference between the guaranteed account limit and the overdraft?
At first glance, a guaranteed account looks very similar to an overdraft, but they are not the same thing and there are some differences between these lines of credit offered by financial institutions.
While the overdraft is an automatic limit, the guaranteed account is an extra limit available in a separate account.
In other words, when we use a certain amount of overdraft, as soon as we deposit the money into the account, the money is automatically discounted. However, this process does not happen in this type of account.
In order to pay, the customer needs to make a transfer with the amount of the debt plus interest, directly to the guaranteed account.
Because there are guarantees, the interest rates charged are much lower when compared to overdrafts. The customer can use both investments and debts receivable, such as promissory notes, as collateral for payment.
What is a corporate guaranteed account?
First of all, the PJ guaranteed account is a current account exclusively for obtaining credit for the company.
This way, the entrepreneur has a business account and an extra account at his disposal, to use in emergencies.
This way, your company gets the money it needs to pay its business accounts, pay off debts to employees or hire new people.
Although, the available limit should only be used for short-term emergencies, as interest rates are usually higher when compared to a business loan, for example.
The best options in the business credit market
#Bradesco
What is a Bradesco guaranteed account?
First hand, the Bradesco guaranteed account It is a revolving credit available for the company to use in the event of an emergency. In fact, the available limit is quite high, with amounts above R$10,000.00.
Find out more details about hiring in the table below:
| Term | Depends on credit approval |
| IOF | 0.0041% per day and an additional 0.38% on the increase in daily balances |
| Available limit | Above R$10,000.00 |
| Interest rate | It can be pre or post fixed and is based on the CDI |
| Collection of charges | 2nd business day or on the anniversary date chosen by the customer |
| Guarantees | Movable and immovable property, financial investment, among others |
What are the advantages?
- No bureaucracy;
- Amortized values can be reused;
- Charges are deducted only from the amount used;
- Interest rates vary depending on the guarantee used in the contract.
#Taranteed Account BB
What is the BB guaranteed account?
Like Bradesco, Banco do Brasil offers an exclusive line of credit to be used in cases of need. However, the maximum payment term is 90 days and the consumer cannot use the limit constantly.
See the table below for the main information about Banco Do Brasil's corporate revolving credit:
| Term | 90 days, but can be renewed automatically |
| IOF | Provided at the time of hiring |
| Available limit | Provided at the time of hiring |
| Interest rate | It can be pre or post fixed and is based on the CDI |
| Collection of charges | Provided at the time of hiring |
| Guarantees | Provided at the time of hiring |
What are the advantages?
- Fast credit;
- The customer can reuse the amortized amounts;
- Ideal for meeting temporary needs in the company's cash flow.
#Itau
What is Itaú Guaranteed Account?
From now on, you should know that consumers can sign up for an Itaú guaranteed account directly from the app, but first they need to have an active business account with the Bank.
The cool thing is that the entrepreneur can use credit card sales and post-dated checks to be received as guarantees.
Want to know more? See all the details in the table below:
| Term | Provided at the time of hiring |
| IOF | Provided at the time of hiring |
| Available limit | It depends on the guarantees available. |
| Interest rate | It can be pre or post fixed and is based on the CDI |
| Collection of charges | At the time of hiring and every 30 days |
| Guarantees | Personal Guarantee, credit card sales, invoices, checks receivable |
What are the advantages?
- Hiring can be done online;
- The customer pays interest and charges on the credit used proportional to the days of use;
- Possibility of using a joint and several debtor as a personal guarantee.
#Santander
What is a Santander guaranteed account?
With a Santander guaranteed account, the entrepreneur can use the available limit either in full or in part. In addition to being a solution for your company's cash flow, the amount is released immediately.
The product is only available to customers with an active business account with Santander. See the details of the contract:
| Term | Varies between 30 and 365 days |
| IOF | Charged on the 1st business day of every month, the amount is informed at the time of contracting |
| Available limit | Above R$10,000.00 |
| Interest rate | Can be pre or post fixed |
| Collection of charges | 2nd business day or on the anniversary date chosen by the customer |
| Guarantees | Movable and immovable property, financial investment, invoices, among others |
What are the advantages?
- You have the freedom to choose the guarantees to make up the contract;
- The entrepreneur pays interest rates, charges and IOF only for the amount and time he uses the credit;
- Renewals are automatic, depending on the customer's guarantees and credit analysis.
Secured Account Advantages and Disadvantages
Like all financial products, an escrow account also has its advantages and disadvantages.
For this reason, first and foremost, your company needs to have good financial management and control.
And, therefore, be prepared for all types of risks and threats. Therefore, before hiring, analyze the advantages and disadvantages, in addition to making a plan to include this expense. Ok?
Advantages
- Easier to obtain a business line of credit;
- Money in your account quickly and without bureaucracy;
- Quick solution to emergency problems;
- More attractive interest rates according to the customer's guarantees and credit analysis.
Disadvantages
- Money can only be used for short-term goals;
- In the absence of payment, interest is high;
- The customer pays the IOF fee for each withdrawal made.
Conclusion
Financial instability is very common in the routine of all businesses, especially in times of crisis, as we have recently experienced.
Fortunately, there are several resources available and one of them is the secured account – a good injection of quick and easy cash into your cash flow.
But, as we have seen throughout this reading, despite the advantages there are also risks.
So, first of all, plan ahead and only use the feature in emergencies, ok?
The misuse of all types of credit, whether personal or business, can cause serious problems. It can also prevent profits and investments in new growth opportunities.
Did you like this topic? Also read our exclusive article for MEIs: “Credit Card for MEI – what is it, how does it work and which is the best?”. Click the button below and find out all the details!
