Judicial recovery is one of the most concerning signs that a company is facing serious financial problems. To avoid reaching that point, it is essential for small and medium-sized enterprises (SMEs) to manage their finances in an intelligent and strategic manner. Fintechs have played a crucial role in this process, offering solutions that help companies avoid extreme financial crises.
The severity of the problem becomes evident in the recent records of bankruptcy filings made by these companies. In July, SMEs registered 166 requests, representing 72.8% of the total 228 requests made by companies of all sizes — the highest result for the month since the start of Serasa Experian's historical series in 2005.
These numbers highlight the lack of healthy financial management, which pushes many SMEs to the limit of their capacities, forcing them to seek judicial protection to renegotiate their debts. Fintechs offer a more efficient and personalized approach to financial management, allowing SMEs to better organize their cash flows and responsibly manage their commitments. Through innovative tools, these companies help SMEs understand their finances in detail and make data-driven decisions, which is essential to avoid payment delays, default, and the need to resort to judicial recovery.
Effective credit management is essential, especially for small and medium-sized enterprises (SMEs), as access to financing generally depends on clarity and accuracy in cash flow statements. Companies that cannot clearly demonstrate their results face difficulties in obtaining loans from banks and other financial institutions. When credit is needed, it often comes with high rates, such as overdraft or working capital, which can compromise the financial health of the business.
With more flexible payment terms and reduced interest rates, SMEs can maintain a healthy cash flow, strengthen their business relationships, and focus on business growth without constant concern about financial crises. In Brazil, where approximately 8 million companies are SMEs representing 30% of GDP but receiving only 7.5% of the available credit, the role of fintechs becomes essential to improve this discrepancy and promote the economic development of the sector.
With an innovative and personalized approach, Justa and other fintechs are transforming the way SMEs handle their finances, ensuring that these companies have the support needed to grow and prosper. The "split" system, which automates the division of payments in commercial transactions, allows the amount paid in a single transaction to be automatically divided among different parties involved, ensuring security and saving time for the participants.
The split is especially useful for SMEs that need to ensure recurring payments and avoid double taxation. For example, when a customer makes a purchase in a store, the amount can be split in real time between the establishment and the service provider, without the need for additional steps or manual processes. This system is a reflection of technological advancement in payment methods and helps reduce the risk of default, providing more efficient financial management.
*Eduardo Vils is president of fintech Justa, whose mission is to make the market fairer.
