Indebtedness index: know your financial commitment

Working with third-party capital to drive a company’s growth is a common practice, but when poorly controlled, it can cause management problems. To avoid this, it is important to keep constant attention to the debt ratio and make sure that financial commitment is acceptable.

Most entrepreneurs even know the total value of their debts with financing and suppliers, but this number does not have a palpable meaning, since it does not show how much of the capital of the enterprise is compromised. The total amount of debt is only one of the financial indicators that should be evaluated, as well as the index.

We have prepared this indicator to clarify your doubts regarding this important business indicator. Keep reading!

Know the debt ratio

 

Is it possible to differentiate how much of the company’s activity uses third-party capital and how much is financed by personal capital? That’s where the debt ratio comes in! When explored in a historical series, it reveals the fraction of external resources that the enterprise has used to guide the business and provides essential information for decision making.

The indebtedness index is widely used by companies to discern the extent of assets that the business has, but which are funded by third party resources, that is, by debts that must be settled at a later date.

Find out if the debt ratio is worrisome or not

Find out if the debt ratio is worrisome or not

Essentially, the company’s debt ratio is an indicator of financial performance that aims to show whether the business needs to make debt to continue operating.

The degree of indebtedness of the company considers several successive periods to indicate how the enterprise has done to obtain revenue . For example, he finds out whether the company needs to use a near-capital complement to inject them into its production method or whether it needs to acquire debt as loans to pay other liabilities.

The first case can be pointed out as a good debt level, since the company is borrowing from itself. However, in the second case, there is a great possibility that the business will go bankrupt, so you have to be very cautious.

Learn how to calculate the debt ratio

To do this, you do not have to have specific skills and much less pay to get it. The index is a simple account, whose basic numbers can be easily found on the balance sheet . Check out how to make this account uncomplicated and efficient:

With the balance in hand, find the values ​​of current and non-current liabilities. They demonstrate the amount of third-party capital being used in the company in the short and long term, respectively. Have the total asset value as well.

The debt ratio is the result of the division of the sum of the liabilities by the asset. To obtain the percentage, simply multiply that number by one hundred, as follows:

With this formula, you get the percentage value of your company’s debt. Obviously, the bigger it is, the worse the financial situation you are in. However, there is no default value that indicates a healthy debt ratio. Generally, from 70%, the dependence on third-party capital is excessive.

Interpret the data obtained

 

One interesting thing about financial ratios is the ability they have to indicate ways and solutions. With the debt ratio is no different.

Even if the amount is high, it is only a worrying number if the company’s commitment is made to cover other debts and obligations, causing the so-called “snowball”. Otherwise, the percentage may indicate that new investments are being made to drive growth.

Even interest on bank financing may be insignificant in the face of increased billing resulting from the expansion of the enterprise. That is, if your company is in this scenario, there is nothing to worry about.

Even when indebtedness is caused by a large number of obligations, it is necessary to review costs and perhaps renegotiate debt to improve working capital and even analyze the balance sheet and the income statement to find exactly what is hindering the performance of your company.

So you have a better chance of reducing the amount of third-party capital in your company, gaining momentum in the asset and manages to improve your power to make financial decisions, depending less on loans to keep the business strong and thriving.

Evaluate the company’s situation

 

To classify if the debt ratios of a business are at acceptable levels, it is not enough simply to have the present value. It is necessary to follow the historical progress of values ​​and to follow up on monthly, quarterly and annual support. In this way, the longer the time, the greater the assimilation of the manager.

It is also significant that certain comparisons are made. Is a 25% value something good or bad? This will depend on the market in which a certain company is inserted. If all competitors have indices around 12% or 18%, definitely 25% is a high value. In contrast, if they have values ​​greater than 35%, then 25% will be a good value.

These amounts of competitors will rarely be available directly to the companies, since they are strategic and confidential data of the enterprises . However, there are ways to find out the average indebtedness indices of an industry through information from unions, councils or associations representing a particular activity.

The debt ratio is one of the tools for a manager to optimize the financial health of a company, but it is not the only one. A bad index does not mean the end of everything, since it must be ascertained with a set of other variants. Likewise, a good indebtedness ratio alone does not depict reason to celebrate.

12 Financial Decisions for the 12 months of 2019

Payroll-deductible loans are a simple and safe way to get credit. With cheaper and flexible plans, this modality has provided many opportunities to those who need money and good conditions. http://pennyashton.com/direct-bad-credit-payday-loan-lenders-get-on-with-your-application/ has examples

Find out what it is, how it works and how to ensure the best conditions for your pocket!

But what, after all, is paycheck credit?

Payroll-deductible loans are personal loans where the value of the installments is automatically discounted, directly in the paycheck or INSS benefit .

It is considered as one of the best options for those who need money in the short term. With lower interest rates, payroll deductible loans can be used for various purposes.

The credit can be obtained in banks or financial institutions in the limit value of 35% of the monthly value of the salary, retirement or pension. This value is known as the assignable margin 

Many Dollar.

Of this amount, 5% must be used exclusively through a specific credit card .

Thus, if a person has a monthly income of R $ 5,000.00 net, for example, can commit monthly maximum of $ 1,200.00 with one or more payroll loan contracts.

Learn how and why payday loans came about.

How did the paycheck come?

In order to reduce the indebtedness of Workers, Retirees and Public Servants through a form of financing with lower interest rates, Provisional Measure No. 130/2003 , announced during President Lula’s term of office.

In addition to defining the general rules for the granting of payroll deductible loans, this measure also gave rise to Law 10,820 / 2003 – which is a reference in this matter.

Since then, the payroll has undergone several revisions and improvements and has become increasingly popular. Precisely because it is a loan less bureaucratic and cheaper than the others.

Check the comparison between payroll loans and other modalities.

What is the interest rate of the Payroll Loan?

What is the interest rate of the Payroll Loan?

Payroll is the cheapest personal credit option of all. It is on average about ten times cheaper than other types of loans, such as credit card and overdraft .

Comparative Payroll Credit Rates
Infogram

The guarantee of the payment that the financial institutions have, by the payment of the portion is discounted in sheet, is one of the factors that contribute to that the rate of interest is smaller.

This is because we know that the interest has to do with the size of the risk of who lends the resource.

Thus, it can be said that payroll is safer for those who take credit and for those who lend money. That’s because payment is guaranteed .

Unlike other credit modalities, the payroll has a cap on the interest rate. That is to say, that banks have a maximum limit to pass on to the consumer.

This amount is part of the costs of the contract, called Total Cost Effective (CET).

For many, payday loan is known as a payday advance. But, it is worth remembering that this advance is charged with interest and that the longer the term, the higher the interest. Therefore, the lower will also be the remaining salary balance at the end of the month.

In practice, the payroll loan has some specific rules, but it works just like any other type of loan where you have to make monthly payments to pay off the debt . The biggest differences are in the interest rate and in the way the payment of benefits is performed.

In addition to other advantages, the sport has attracted more and more people. However, it can only be hired by some groups. Find out what they are and if you find yourself in one of them.

Who can hire a Payroll Loan?

The categories eligible to hire consigned workers are: INSS Retirees or Pensioners, Public Servants, Armed Forces Military and Private Enterprise Workers .

In the case of INSS beneficiaries, it can only be contracted in authorized institutions . However, there is no need to be in the same bank where you receive the benefit.

Each category has minimum ages and different payment periods (or installments). But in general, it is very easy to get credit.

The paycheck is also a viable alternative for people who have experienced some sort of tightening or unforeseen and have ended up, by chance, with the “dirty name” and negatives . There is no consultation with SPC or SERASA.

It is intended for people who have at least a guaranteed income at the end of the month. Therefore, it does not apply to the case of self-employed or informal workers.

In all cases allowed, it is necessary that the institution or company that pays the benefit or salary, has an agreement signed with the banks .

The interested party does not need to be a bank account holder. In this way, it is possible to make simulations and evaluate the best bank to make the consigned loan .

For hiring this credit, usually the required documents are:

  • Photo identification document (RG or CNH);
  • CPF;
  • Proof of address
  • Updated contracheque or INSS statement . For Retirees you also need an account document in the bank where the loan will be deposited.

What are the deadlines for payment and limit of contracts?

The term of payment of payroll can be up to 96 months for Public Servants . In the case of Retirees and Pensioners of the INSS, the term goes up to 72 months . Private Empress workers pay on average, within 48 months.

The maximum amount of loans for INSS beneficiaries was changed from six to nine loans . Public servants can take as many loans as they need. The limit is the available margin.

How long does it take for the Payroll Loan to fall into the account?

Another advantage of payday loan is that the time between approval and payment can happen in hours.

In the case of free margin or refinancing , the credit can enter the user’s account on the same day, if the documentation is delivered and approved by the bank and the endorsement occurs normally.

In case of portability to other banks , operation in which the user migrates their loan to another financial institution, the value can take up to three weeks. Nevertheless, this is an operation that compensates for the reduction of the interest rate.

With the endorsement, the source paying the salary (company or public institution) or benefit (Social Security) authorizes the monthly discount of the installments in the paycheck and the money is then released into the account of the contractor .

Take advantage to discover your pre-approved proposal for loan or paycheck card. Without leaving home in a few minutes and with the best conditions for you! Make a simulation online now!

Do you want to make a payday loan?

Do you want to make a payday loan?

What is Payroll Credit? Discover all the advantages

Payroll-deductible loans are a simple and safe way to get credit. With cheaper and flexible plans, this modality has provided many opportunities to those who need money and good conditions.

Find out what it is, how it works and how to ensure the best conditions for your pocket!

But what, after all, is paycheck credit?

Payroll-deductible loans are personal loans where the value of the installments is automatically discounted, directly in the paycheck or INSS benefit .

It is considered as one of the best options for those who need money in the short term. With lower interest rates, payroll deductible loans can be used for various purposes.

The credit can be obtained in banks or financial institutions in the limit value of 35% of the monthly value of the salary, retirement or pension. This value is known as the assignable margin 

Of this amount, 5% must be used exclusively through a specific credit card .

Thus, if a person has a monthly income of R $ 5,000.00 net, for example, can commit monthly maximum of $ 1,200.00 with one or more payroll loan contracts.

Learn how and why payday loans came about.

How did the paycheck come?

Many Dollar 

In order to reduce the indebtedness of Workers, Retirees and Public Servants through a form of financing with lower interest rates, Provisional Measure No. 130/2003 , announced during President Lula’s term of office.

In addition to defining the general rules for the granting of payroll deductible loans, this measure also gave rise to Law 10,820 / 2003 – which is a reference in this matter.

Since then, the payroll has undergone several revisions and improvements and has become increasingly popular. Precisely because it is a loan less bureaucratic and cheaper than the others.

Check the comparison between payroll loans and other modalities.

What is the interest rate of the Payroll Loan?

What is the interest rate of the Payroll Loan?

Payroll is the cheapest personal credit option of all. It is on average about ten times cheaper than other types of loans, such as credit card and overdraft .

Comparative Payroll Credit Rates
Infogram

The guarantee of the payment that the financial institutions have, by the payment of the portion is discounted in sheet, is one of the factors that contribute to that the rate of interest is smaller.

This is because we know that the interest has to do with the size of the risk of who lends the resource.

Thus, it can be said that payroll is safer for those who take credit and for those who lend money. That’s because payment is guaranteed .

Unlike other credit modalities, the payroll has a cap on the interest rate. That is to say, that banks have a maximum limit to pass on to the consumer.

This amount is part of the costs of the contract, called Total Cost Effective (CET).

For many, payday loan is known as a payday advance. But, it is worth remembering that this advance is charged with interest and that the longer the term, the higher the interest. Therefore, the lower will also be the remaining salary balance at the end of the month.

In practice, the payroll loan has some specific rules, but it works just like any other type of loan where you have to make monthly payments to pay off the debt . The biggest differences are in the interest rate and in the way the payment of benefits is performed.

In addition to other advantages, the sport has attracted more and more people. However, it can only be hired by some groups. Find out what they are and if you find yourself in one of them.

Who can hire a Payroll Loan?

The categories eligible to hire consigned workers are: INSS Retirees or Pensioners, Public Servants, Armed Forces Military and Private Enterprise Workers .

In the case of INSS beneficiaries, it can only be contracted in authorized institutions . However, there is no need to be in the same bank where you receive the benefit.

Each category has minimum ages and different payment periods (or installments). But in general, it is very easy to get credit.

The paycheck is also a viable alternative for people who have experienced some sort of tightening or unforeseen and have ended up, by chance, with the “dirty name” and negatives . There is no consultation with SPC or SERASA.

It is intended for people who have at least a guaranteed income at the end of the month. Therefore, it does not apply to the case of self-employed or informal workers.

In all cases allowed, it is necessary that the institution or company that pays the benefit or salary, has an agreement signed with the banks .

The interested party does not need to be a bank account holder. In this way, it is possible to make simulations and evaluate the best bank to make the consigned loan .

For hiring this credit, usually the required documents are:

  • Photo identification document (RG or CNH);
  • CPF;
  • Proof of address
  • Updated contracheque or INSS statement . For Retirees you also need an account document in the bank where the loan will be deposited.

What are the deadlines for payment and limit of contracts?

The term of payment of payroll can be up to 96 months for Public Servants . In the case of Retirees and Pensioners of the INSS, the term goes up to 72 months . Private Empress workers pay on average, within 48 months.

The maximum amount of loans for INSS beneficiaries was changed from six to nine loans . Public servants can take as many loans as they need. The limit is the available margin.

How long does it take for the Payroll Loan to fall into the account?

Another advantage of payday loan is that the time between approval and payment can happen in hours.

In the case of free margin or refinancing , the credit can enter the user’s account on the same day, if the documentation is delivered and approved by the bank and the endorsement occurs normally.

In case of portability to other banks , operation in which the user migrates their loan to another financial institution, the value can take up to three weeks. Nevertheless, this is an operation that compensates for the reduction of the interest rate.

With the endorsement, the source paying the salary (company or public institution) or benefit (Social Security) authorizes the monthly discount of the installments in the paycheck and the money is then released into the account of the contractor .

Take advantage to discover your pre-approved proposal for loan or paycheck card. Without leaving home in a few minutes and with the best conditions for you! Make a simulation online now!

Do you want to make a payday loan?

Do you want to make a payday loan?

How to get a loan?

The loan is an agreement made between people and institutions, and it works when the company lends money that must be returned in a combined period of time.

The credit is used in the short term and custom made by means of bank account or credit card.

And the financing is when you use your as well as collateral, with low rates compared to other modalities.

However, before you apply for a loan, you need to analyze your finances and see if you can afford the loan installments.

The loan is a quick and simple way to get money.

What are the interest rates?

Calculator,money

Generally, the interest rate for the credit revolves around 6,73% monthly. However, BV presents several other options with different taxes. It all depends on the risks and the purpose of the loan. To check the table, just visit the company website.

Is it worth using the services?

Advantages of applying for the loan

The advantages of hiring BV Financeira is the variety and accessibility of service. In addition to the large national expansion in stores, the bank offers services through online link or chat on the official portal.

The site is very simple and provides the necessary information of your products and contacts.

Finally, it is important to add that the company has a banking partnership with Banco do Brasil (BBAS3). Therefore, it increases the range of possibilities for the payment of their respective customers.

Disadvantages of service

One of the problems of the electronic address is the lack of simulators, with the exception of the credit of property with guarantee.

Another disadvantage is that if the customer loses the ticket and does not communicate to the attendants within 15 days, the amount of the installment can only be delivered to a collection office.

Be careful when applying for an internet loan so as not to fall into scams.

Beware of scams on the internet

It is a fact that with the advent of the internet, not only facilities for the daily life of the human being have emerged, but also serious problems that, depending on the proportion, sink the personal life of the person involved.

Money and calculator

Well, taking that statement into account, there are blows at all instant with regard to loan offers and other credits. Situation more common than you think.

But for you not to be the next victim, here are some tips to get rid of this headache: never pay in advance. Large banking institutions will never ask for advance payment before the money is released.

Another recurring issue is the misconfiguration of the site. Even if it looks professional, it is common for there to be some suspicious features.

So make sure you’re confident before you enter your personal data and navigate through all the tabs. An interesting tip is to look for the security certificate (padlock) located on the left side of the link.

In addition, although few people read the terms of use, it is crucial to check the points placed because criminals generally apply scams due to users’ lack of attention.

Do not stop there, it is essential that you research the company before closing business. You can usually find testimonials from people who have contracted the service and their experiences from Google.

If you have complaints of irresponsibility, it is not recommended to opt for such. And still look for official data, such as CNPJ, business name, address, and if you have a telephone number, call and see the level of service.