With Selic at 15% per year, small businesses face a very challenging financial environment, where the cost of high credit raises default and directly impacts the business.
How can entrepreneurs prepare for this scenario?
The scenario of high interest rates and their impacts on the entrepreneur
We are living a time when the basic interest rate, Selic, is 15% per year, a high level that has not been seen for years. For the small and medium entrepreneur, this means that the cost of money became much more expensive. In other words, taking credit to finance the business or working capital costs much more expensive, and this directly impacts the company’s financial health.
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In addition, market projections indicate that the Selic rate should remain at two -digit levels by at least 2027. This means that the high interest scenario is not temporary, requiring entrepreneurs to maintain the financial health and competitiveness of their business.
But have you ever wondered how this high interest rate affects the daily life of your business? Can the increase in credit costs be behind that delay in paying suppliers or difficulty honoring commitments?
High interest rates, default and bankruptcy of small businesses in 2025: a worrying scenario
According to recent data from Serasa Experian, Brazil reached a historical record of business default in early 2025. There are about 7.1 million default companies, representing approximately 31.4% of the total active business in the country. Among these, micro, small and medium -sized businesses (SMEs) are the most affected.
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This scenario highlights the direct impact of high interest rates on the ability of these companies to honor their financial commitments. The increase in credit costs presses business cash, raising the risk of delays, default and, in more severe cases, bankruptcy.
When interest rates go up, companies that depend on credit to operate end up looking for more loans to cover expenses and keep the business running. This happens especially with small and medium businesses, which often do not have robust financial reserves.
The problem is that, at the highest credit cost, the risk of default increases. Imagine a small businessman who needs to buy inputs for production, but the cost of financing has risen too much. It ends up delaying payments, which can generate fines, interest and even loss of confidence from suppliers. This waterfall effect can lead to a financial crisis.
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Reflection: Do you know the real cost of credit for your company?
How many times have you taken a loan without calculating the impact of interest on your cash flow? Or without considering the deadline to pay and how much will this weigh on the end result?
In addition, it is important to evaluate other costs involved, such as bank fees, mandatory insurance and possible late fines. It is also worth analyzing the effect of compound interest over time and how they can significantly increase the total amount to be paid.
These questions are fundamental to any entrepreneur who wants to keep their business healthy. Credit can be a powerful tool, but only used with planning, awareness and a detailed analysis of the total costs involved.
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The rule is simple: the basics that needs to be done – efficient cash management
In a high interest scenario, efficient cash management is no longer a differential and becomes a necessity for any and all company.
Definition of strategies, management routines and constant follow -up are fundamental. And among the good practices to be performed, it is worth considering:
- Monitor cash flow daily (inputs and exits, income and expenses)
- Plan payments and receipts in advance
- Negotiate deadlines and conditions with suppliers and customers
- Avoid unnecessary use of credit and seek cheaper financing alternatives
- Maintain financial reserves for emergencies, the so -called minimum cash reserve for possible eventualities.
In this context, having a strategic partner makes all the difference.
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More than financial products, such as XP companies we have the purpose of being entrepreneurial bank, delivering knowledge and support for you to make informed decisions, minimize risks and take advantage of market opportunities.
The high interest scenario is a challenge, but also an opportunity for those who are prepared. Efficient cash management, prevention and strategic planning are the tools that can ensure the longevity and success of your business.
Count on XP Enterprises to be this bridge that connects you to sustainable growth, even in difficult times.
Remember: in agitated seas, maybe navigate comes further…
