Identify how much reaches your cash account
The contracted amount may differ from net proceeds. Fees, contracted insurance, taxes and other charges can affect transaction cost. The Central Bank’s total effective cost rule covers specified transactions with individuals, sole entrepreneurs and qualifying small businesses. Request the breakdown applicable to your contract.
Compare equivalent amounts
Imagine two terms for receiving R$10,000 net, with no other amounts in this arithmetic illustration. One has 12 payments of R$950, totalling R$11,400. The other has 10 payments of R$1,100, totalling R$11,000. The second totals less but requires a higher instalment over a different term. This simple sum does not calculate total effective cost because it omits timing and all charges.
Put the dates on a calendar
Check when funds arrive, when repayment starts and how due dates relate to business receipts. A grace period does not necessarily mean no cost. Check late payment, early settlement and contract-change conditions, and retain the terms you accepted.
Consider both cost and capacity
A headline rate alone does not explain the transaction. A small instalment can extend a debt. Assess total cost, term, net proceeds and repayment capacity under lower-revenue scenarios. Put every offer into the same comparison table and clarify unidentified items.