In Brazil, where 99% of companies are small and medium-sized and account for more than half of formal employment, access to credit remains one of the biggest challenges for businesses. The problem is not new, but it remains an invisible barrier that stifles opportunities, limits investments, and reduces growth potential.
According to SEBRAE data, there are 6.4 million establishments in the country, of which more than 6 million are small and medium-sized enterprises. But, in practice, most of these companies encounter a financial market structured to serve giants, not small entrepreneurs.
The person commenting on the subject is the specialist Gabriel César, CEO of M3 Lending, a fintech that facilitates access to credit for companies. It points out some of the main difficulties faced by SMEs, such as bureaucracy, strict requirements, and lack of credit history, barriers that limit the growth of these companies. But don't worry, there are alternatives to overcome them. Check it out
1 – Requirement for guarantees
The requirement for guarantees is one of the biggest challenges faced by SMEs in their pursuit of credit. Most of these companies do not have sufficient assets or property to offer to banks, which restricts their financing options and makes credit inaccessible for businesses, especially those in the consolidation phase. This scenario limits the growth of companies, since without access to adequate credit, they face difficulties in investing in expansion, modernization, or improving their competitiveness.
Furthermore, since SMEs are considered riskier due to their nature and size, financial institutions tend to require more robust collateral, such as real estate or high-value equipment, which is often beyond the reach of these companies. This causes many entrepreneurs to stay off the radar of traditional credit lines.
2 – Credit history
Another major challenge faced by SMEs is the lack of a credit history, which makes it difficult to access financing. To build a good financial reputation, companies need to obtain credit, but without a prior history, banks often refuse loans. This vicious cycle hinders the growth of small businesses, limiting their opportunities for expansion and investment.
Furthermore, many entrepreneurs face difficulties in proving their financial management ability and profit generation, which are important factors for obtaining credit. Thus, alternatives such as personal loans are often more expensive and not ideal for sustaining the company's long-term growth.
3 – Financial disorganization
Financial disorganization is also a bottleneck when it comes to seeking credit. The lack of accurate and well-structured information hampers banks' analysis of the company's financial health. "Without organized balances and formalized documentation, many businesses are unable to even initiate a credit request. The difficulty in meeting bureaucratic requirements not only delays the process but also frustrates entrepreneurs, who end up wasting time and opportunities," explains César.
Therefore, financial organization should not be seen merely as a bureaucratic issue, but as a strategic tool for the company's success. The adoption of good financial management practices, such as maintaining rigorous accounting records, cash flow planning, and organizing tax obligations, is essential not only to facilitate access to credit but also to ensure the sustainability and long-term growth of the business.
4 – Choosing the wrong line
Furthermore, choosing the wrong line of credit can turn into a real trap. "High interest rates and misaligned deadlines with cash flow often result in an even more severe financial imbalance for SMEs," warns the CEO. For those who already face difficulties, such as pending debts and a history of default, the challenge becomes even greater. "Companies with financial problems are seen as high risk, and the banks' response is usually always the same: negative," she adds.
Furthermore, many financial institutions offer credit lines that seem advantageous at first glance, but over time, prove to be harmful. The lack of a more detailed analysis of the company's financial profile can result in payment terms incompatible with the revenue-generating capacity of SMEs. This lack of proper planning can even lead to the bankruptcy of businesses that, under other circumstances, would have the capacity to recover.
Platforms assist with higher amounts and lower interest rates
In this way, alternatives such as fintechs and digital credit platforms have been gaining strength. M3 Lending, for example, bets on a direct connection model between companies in need of credit and investors seeking profitability. "Interest rates are 22% lower than those practiced by conventional banks, in addition to a digital and streamlined process," says César.
The fintech's proposal is to unlock credit for SMEs in an accessible, transparent, and less bureaucratic way. "Our goal is to give small and medium-sized businesses the chance to grow without being hostage to a system that often does not see them as a priority. Technology makes this possible, and we are here to bridge that gap," concludes the CEO.
Founded in Belo Horizonte (MG), M3 Lending began its operations in 2021. A fintech connects small and medium-sized businesses seeking credit with investors, mainly individuals, who wish to allocate capital to these businesses. With just R$ 250, any investor can participate in the platform and diversify their investments, while also boosting the growth of Brazilian entrepreneurs.
Currently, there are already more than 2,000 people connected to M3, both as borrowers and investors, reports the CEO. It is a more inclusive financing model, connecting, on one side, those who need working capital, and on the other, those who intend to invest, contributing to the growth of companies.
Among the main reasons for seeking credit, according to the company, are: purchasing new inventories (20%), opening new units (25%), expanding facilities (15%), and expanding operations (40%). "This shows that companies are seeking credit to grow and strengthen their working capital," highlights Gabriel Sousa César, CEO of M3.
In this way, the fintech is able to offer better credit conditions – including in comparison with conventional banks. For the same case, the amount made available can be more than 50% higher than what a traditional financial institution would offer, calculates the CEO.
