BNDES Credit Lines and Accredited Suppliers
The Brazilian government offers multiple incentives for small and medium national companies. Among these, there are special credit lines that are easier to obtain and help small and medium companies grow. In this article, we will understand what it means to be a BNDES Fornecedor Credenciado.
Overview of BNDES
BNDES, which is short for Banco Nacional de Desenvolvimento Econômico e Social, Portuguese for National Bank for Economic and Social Development is a public organization linked to the Ministry of Development, Industry and Foreign Trade.
Since its foundation in 1952, BNDES aims to support ventures that contribute to the development of the country, investing in the sectors of agriculture, industry, infrastructure, trade and services. Recently, the bank has also invested in social causes such as education, health, family farming, sanitation and urban transport.
BNDES finances investments for expanding, modernizing and recovering the production capacity and the competitiveness of small and medium national companies. It does so by allowing acquisition of new machinery and equipment produced in Brazil, which must be accredited by BNDES.
BNDES Card
The BNDES card is a special credit card offered by BNDES which aims to finance investments made by micro, small and medium companies, as well as Individual Small Business Owners - popularly known as MEI. These investments come in the form of financing for the purchase of products listed here.
The main benefits of the BNDES card are:
- Pre-approved credit limit of up to BRL 1 million, granted by the bank that issued the BNDES card
- Automatic financing for up to 48 months, with payment to be done in fixed installments
- Attractive interest rates
- No IOF charges
Every month, BNDES informs the market of its actual interest rate. It is possible to see all of BNDES interest rates in this link.
The banks that are allowed to issue BNDES cards are:
- Banco do Brasil
- Banrisul
- Bradesco
- BRDE
- Caixa
- Itaú
- Santander
- Sicoob
- Sicredi
Companies or business owners that possess a BNDES card can only buy products that are available on their website, through a search mechanism available here.
Requirements for Applying for a BNDES Card
As stated before, BNDES cards are intended for micro, small, medium companies and MEIs, that have an annual gross revenue of up to BRL 90 million. The following requirements must also be respected in order to apply for a BNDES card:
- Be headquartered in Brazil, with Brazilian shareholding control
- Engaged in economic activities that are compatible with the BNDES Operational and Credit Policies
- Be up to date with the payment of federal taxes, such as INSS and FGTS
Farmers can also apply for a BNDES card, provided that they have a CNPJ and are registered with the city’s Board of Trade.
Accredited Suppliers
BNDES will grant a special certification to suppliers that are headquartered in Brazil and willing to sell to BNDES credit card holders. These entities are called Fornecedor Credenciado, which is Portuguese for Accredited Supplier.
The main benefits for BNDES accredited suppliers are:
- Being able to perform business deals with automatic financing for the customer for up to 48 months
- Assurance of receiving the amount that was financed by BNDES within 30 days after the registration of the Nota Fiscal in the BNDES card website
- Free granting of space in the BNDES Card website in order to display the company’s products catalog
- Exemption from analysing the customer’s credit for each sale, since the credit has already been pre-approved
- More speed in the sales process
- No more compromise of the company's working capital when financing customers
Requirements for being an Accredited Supplier
The following entities can apply to be a BNDES accredited supplier:
- Companies with at least 60% of its shares being held by Brazilians, which produce goods and inputs supporting the activities of micro, small and medium companies
- Producers of parts, pieces and components for industrial capital goods, provided that at least 60% of them were of Brazilian production. These producers are required to have a webpage, where information about the company and the product’s characteristics are available
- Producers of computer components and industrial automation
- Manufacturers of computer equipment that are registered with the Ministry of Science, Technology and Innovation
- Companies that produce materials, components and building systems destined for civil construction, provided that they be accredited by the Programa Setorial da Qualidade - which is Portuguese for Sectorial Quality Program - or by Inmetro
- Brazilian companies that develop software for computers and that are holders of intellectual property in Brazil. These companies must also have a webpage, where information about the company and the software characteristics are available
- Shops that are accredited by Inmetro for the installation of Compressed Natural Gas kits
- Distributors, provided that they be appointed by accredited suppliers
- Entities that are accredited by Inmetro for providing services of Conformity Assessment
- Printing companies that accept book printing orders made by publishers
- Educational institutions, companies and language schools that provide classroom courses for the training or development of activities such as reception, trips, events, food services, entertainment and languages (English and Spanish)
- Companies that provide design, ergonomics and product modeling and packaging services, provided that their CNPJ is at least two years old and that they have a webpage, where a portfolio showing that the company provided this type of service for at least three different companies
- CD and DVD manufacturers that accept orders of copies made by recording companies, distributors of movies or video stores
Entities that provide accreditation services are also among those that may apply to be a BNDES accredited supplier in the following cases:
- In the case of hospitals and other health institutions, provided that they follow ANS standards
- In the case of services of metrology, standardization, technical regulations and conformity assessment, provided that they are accredited by Inmetro
Finally, manufacturers of the following goods can also apply to be a BNDES accredited supplier, provided that some requirements are met:
- Boat producers - provided that the boats are meant for fishing or transportation, smaller than 20 feet and with an engine smaller than 200 HP. Motorboats for specific utilities, such as maintenance and repair, intended for medical and dental service, firefighting, among others have no restriction as to their size or engine power
- Automotive parts for heavy or agricultural vehicles, such as trucks, buses and tractors
- Tires for buses, trucks, tractors, agricultural or highway maintenance machines as well as tires for motorcycles up to 250cc, tricycles and quadricycles
In order to apply to be a BNDES accredited supplier, it is necessary to access this website. After completing information such as the CNPJ and the CNAE number - which is Brazil’s equivalent to the International Standard Industrial Classification of All Economic Activities - it will be necessary to chose a credit card acquirer.
The BNDES card works with Cielo, Redecard and Cabal. Finally, a thorough description of the products that will be displayed on the site is required, as well as information about how to contact the company and information about the individuals responsible for the BNDES accredited supplier account.