Making a loan in Brazil is not a simple thing, but we live in a country of warriors. There are over 30 million entrepreneurs here who earn up to three minimum wages per month.
People who do not hesitate to work from Sunday to Sunday to bring a better quality of life for their family and people they love. The forms of financing most used today by microentrepreneurs are the payment of suppliers in installments and the post-dated check.
How to borrow from Good Credit
Traditional loans from commercial banks are considered expensive and difficult to obtain, due, for example, to the excess of bureaucracy and collateral required from companies.
Many microentrepreneurs cannot obtain loans because they are too small or because they have no history of relationship with the bank.
The loan is a financial tool to grow a business. When done safely and consciously it can transform the small entrepreneur’s day to day. Even so, people are averse to borrowing money, because they do not trust economic policy or the expected bureaucracy and high costs.
What Is Good Credit?
Good Credit exists to facilitate access to microcredit for entrepreneurs. We do this through a lending platform between people. On the one hand, the entrepreneur tells his story and for what he wants to use the money, on the other hand are individuals who want to help by investing. We set a deadline for each campaign and work to collect the value collectively.
That is, everything works like an online kitty. The difference is that the person who is receiving the money is committed to returning it to his supporters in monthly installments, paid via boletos. A single entrepreneur has several investors, called Good Credit Heroes.
In this way, we created a network of people interested and engaged in building a more inclusive and entrepreneurial Brazil. We believe in the development of micro-entrepreneurship as an engine to alleviate Brazilian social inequality.
How does the loan work in practice?
We know that credit is a double-edged sword: it can mean the growth of the entrepreneur or it can become a debt. We do not want the second case to happen, so there is a process of careful analysis of the developments. We want to meet talented entrepreneurs who are struggling to get a loan.
In a week it is possible to have a project analyzed and the campaign aired. Then it takes an average of one month of disclosure to collect the investment. In summary you will need:
- A bank account registered with your CPF
- Have a referral from a Good Credit partner organization
- Answer our financial profile questionnaire
- Send documents proving your last year’s earnings and expenses
- Send video and / or photos presenting the business
First stage – indication
To take a loan with Good Credit, you must have at least 1 year of experience in entrepreneurship and be appointed by an organization that works with entrepreneurial training.
These organizations have solutions for the areas of business management, market access, communication and related topics, but they do not promote access to credit itself. They can partner with Good Credit in partnerships to carry out the nominations. See the official partners of the platform here.
We do this to get a second opinion from the entrepreneur.
Second step – credit analysis
Here begins the business analysis. With agility, through the internet, we carry out our own business evaluation.
First, the entrepreneur must answer our financial profile questionnaire. It was developed from a study carried out in partnership with FGV, Quintessa Institute, CDE Plan and other social businesses such as Moradigna and 4YOU2. These are questions that deal with basic knowledge of finance, risk appetite, consumption habits, among other relevant aspects.
The questionnaire link is sent by email after completing the registration on our platform under the button “I want a loan”. We do this to understand the risk of the loan.
Financial health analysis
At this stage we want to understand how the finances of the enterprise are going. To do this, we ask you to send documents that prove the cash flow (earnings and expenses) of the business in the last three months. It can be a spreadsheet, extract from the bank, the machine or if it is done in a notebook, the photos in that notebook. At this time we also ask the entrepreneur to send a photo of his ID.
We do this to understand what the approved amount will be. The payment installments must fit in the entrepreneur’s pocket.
Third step – creating the campaign
Now is the time to create the fundraising campaign itself. We guide entrepreneurs on how to record a video and / or take photos about the business to illustrate the campaign. After all, to generate trust, investors must know in detail where they are investing their resources.
Then, over the phone, we talked to the entrepreneur to understand his life story. Your challenges, overcoming and what you intend to use the resources to be raised. With the information we write the text that will accompany the video and / or photos.
Fourth stage – disclosure
This is the time to publicize the project. We sent entrepreneurs an advertising guide with tips on which groups to access, how to communicate and explain Good Credit and the campaign to their audiences.
Together we are stronger. So it is interesting that all audiences involved (Good Credit network, partner organization that made the appointment and contacts of the entrepreneur) are united to take the message further. The more people who access the project page, the greater the chance of making the loan happen.