How can a company deal with variations in the Selic rate?
Posted: Wed Jan 22, 2025 9:49 am
How does the Selic rate affect business?
The most obvious impact on business is in relation to loans. Credit operations , with higher rates, tend to reduce the possibility of obtaining more money. In this way, companies limit the possibility of making investments, buying machinery or investing in any other improvement.
If companies have less purchasing power, it is common for the pace of business to slow down. This can even affect the consumption of products and services from other companies, so there is a greater supply and the price decreases.
Ultimately, the Selic rate has much more power than just indicating the value of interest. What are we talking about? Its changes are precisely to control another variable, which is inflation, and thus keep the economy more balanced.
It turns out that, since we are working with variables, they will never remain the same. They change and alter, and the best way to avoid being drastically affected is to adapt. There are three main situations that a company can face. See below!
Lower Selic
In this case, if inflation is increasing, but the Copom has not yet jamaica phone number list the rate value, keep in mind that the tendency is for it to increase in the future. It's possible that the cost of borrowing will be cheaper now than it will be in a few months.
Higher Selic
When the basic interest rate is high, be careful with inflation. At some point, it will decrease and as a result, the Selic rate will have to be reduced. During this period, a good option for obtaining credit is fintechs, since there is less bureaucracy than with traditional institutions and the process is faster.
I already have loans
Well, in this case, if the Selic rate is high, it is a good time to review your company's management . It is important to monitor the installments and ensure that they are part of the business's monthly budget. Furthermore, if there is more money in your cash register, take advantage of it to pay off the installments in advance or pass the costs on to customers. After all, if prices are increasing due to inflation, it is time to change yours too.
In any case, always pay attention to the reality of your company. The tips above may not work for everyone, so it is important that management constantly monitors your finances .
The most obvious impact on business is in relation to loans. Credit operations , with higher rates, tend to reduce the possibility of obtaining more money. In this way, companies limit the possibility of making investments, buying machinery or investing in any other improvement.
If companies have less purchasing power, it is common for the pace of business to slow down. This can even affect the consumption of products and services from other companies, so there is a greater supply and the price decreases.
Ultimately, the Selic rate has much more power than just indicating the value of interest. What are we talking about? Its changes are precisely to control another variable, which is inflation, and thus keep the economy more balanced.
It turns out that, since we are working with variables, they will never remain the same. They change and alter, and the best way to avoid being drastically affected is to adapt. There are three main situations that a company can face. See below!
Lower Selic
In this case, if inflation is increasing, but the Copom has not yet jamaica phone number list the rate value, keep in mind that the tendency is for it to increase in the future. It's possible that the cost of borrowing will be cheaper now than it will be in a few months.
Higher Selic
When the basic interest rate is high, be careful with inflation. At some point, it will decrease and as a result, the Selic rate will have to be reduced. During this period, a good option for obtaining credit is fintechs, since there is less bureaucracy than with traditional institutions and the process is faster.
I already have loans
Well, in this case, if the Selic rate is high, it is a good time to review your company's management . It is important to monitor the installments and ensure that they are part of the business's monthly budget. Furthermore, if there is more money in your cash register, take advantage of it to pay off the installments in advance or pass the costs on to customers. After all, if prices are increasing due to inflation, it is time to change yours too.
In any case, always pay attention to the reality of your company. The tips above may not work for everyone, so it is important that management constantly monitors your finances .