Companies reach lowest level of debt recovery in a year, says Serasa

At companies Brazilians had the lowest level of recovery of debts in one year in November 2021, according to data from the Serasa Experian Credit Recovery Indicator obtained exclusively by the CNN Brasil Business.

In November, 40.2% of the debts were settled within 60 days after being negative, equivalent to 756,034 debts out of a total of 1,880,682. The value is the lowest since November 2020, when it was 43.3%.

In the period of one year, the highest debt recovery rate by companies was recorded in January 2021, at 51.2%. The rate had been falling since August.

Luiz Rabi, economist at Serasa Experianstates that the result is linked to the unstable economic scenario in Brazil, which has created challenges for entrepreneurs.

“Business owners had an expectation of economic improvement, so the debts incurred in November may have been made to meet the increase in sales, which was expected for the end of the year and beginning of 2022. However, we see that this improvement did not happen”, he says.

According to him, “the inflation scenario, the high interest rate and, therefore, the low purchasing power of the consumer, were factors that reduced the cash flow of companies, making it even more impossible to settle overdue debts”.

The research also shows the degree of recovery of credit of companies by sector of the economy. The best performer was securitization companies, with 46.1%, followed by retail companies, with 45.3% and financial companies, with 44.1%.

The worst performance was the telephone sector, with only 9.4% of debts paid off, followed by the services sector, with 30.7%, and banks and cards, with 38.1%.

Considering the regional division, the best performance in credit recovery in November was in the Northeast region, with 47.1%, followed by the South (47%), North (44.3%), Central-West (38.3%) and Southeast (34.5%).