Home Equity for companies: how much does it cost to invest in business growth?

In a scenario of high interest rates and more restricted credit for companies, finding financing alternatives with lower costs is a priority for entrepreneurs. In this context, Home Equity, known as a loan secured by property, has been consolidating itself as one of the most competitive types on the market. The operation allows businesspeople to use a residential or commercial property as collateral to obtain credit at rates significantly lower than traditional lines. The property remains in the owner’s possession throughout the contract and can continue to be used normally. What is Home Equity for companies?

It is a type of credit in which a property is offered as guarantee for the operation. In exchange, the financial institution provides resources that can be used freely in the business. In practice, the process works as follows: The entrepreneur offers a property as collateral; The institution carries out credit analysis and evaluation of the asset; The amount released can reach up to 50% of the value of the property; After approval, the funds are deposited into the company’s account; The property continues to be used normally by the owner. Because it has a real guarantee, this modality tends to offer more advantageous conditions compared to other business lines of credit. How much does it cost to hire a Home Equity? One of the main advantages of Home Equity is the financial cost. While some types of business credit can exceed double-digit monthly rates, Home Equity generally operates with significantly lower costs due to the reduction of risk for the financial institution. In the case of Inter, rates start at approximately 1.0% per month plus the IPCA. In addition to the reduced rates, the entrepreneur will find other financial benefits: Lower installments; Longer payment terms; Possibility of contracting values ​​starting from R$70 thousand; Greater predictability in cash flow; Less financial pressure on the company’s operation. Before contracting, it is important to evaluate the Total Effective Cost (CET), which includes interest, fees, insurance and other transaction charges. When is it worth using Home Equity in your company? The service is best suited for projects that generate financial returns or increase the operational efficiency of the business. The most common applications are: Company expansion; Renovation or modernization of facilities; Purchase of equipment and machines; Formation of working capital; Stock hiring; Financial restructuring; Consolidation of high interest debts. Many entrepreneurs use the modality to replace more expensive liabilities with lower cost debt, improving the financial health of the business. On the other hand, credit must be contracted with planning. As there is a property linked to the operation, it is essential to ensure that the company’s cash flow is sufficient to meet payments. How to take out a loan with property security? Contracting includes the following steps: Credit simulation; Sending personal and property documentation; Credit analysis; Technical assessment of the property; Signing the contract; Registration of the guarantee at a notary’s office; Release of resources. At Inter, after completing the steps and registering the operation, the approved amount is made available in the account within a short period of time, allowing the company to use the resource quickly. What are the main advantages of Home Equity for companies? In addition to the most competitive rates, the modality offers a series of benefits for businesspeople seeking long-term credit. The main differences are: Lower rates than traditional loans; Possibility of using residential or commercial property; Permanence of the property with the owner; High value credit; Extended payment deadlines; Freedom to use resources according to business needs; Increasingly digital process. For companies that have real estate assets and need resources to grow or reorganize their finances, Home Equity can represent an efficient and strategic alternative. Watch the video with useful tips and information on the topic. Read more Inter stands out in integrity and wins the CGU Pro-Ethics Seal What are the advantages of bringing together banking and investments in one place Which shares are the biggest dividend payers? FAQ: Frequently Asked Questions about Home Equity for Businesses What is Home Equity? It is a type of loan secured by property, in which the asset is used as collateral for the operation while the credit is paid. Can I continue using the property? Yes. The property remains in the owner’s possession for the entire duration of the contract. How much can I hire? The value can generally reach up to 50% of the property’s appraised value, depending on the credit analysis. Can the resource be used for any purpose? Yes. The money can be used for working capital, company expansion, purchasing equipment, paying off debts or other business needs. Is Home Equity cheaper than traditional business loan? In general, yes. As there is a real estate guarantee in the transaction, rates are usually significantly lower than those charged on unsecured lines. Can I use a residential property as collateral? Yes. Many institutions accept both residential and commercial properties, as long as they meet the required evaluation and documentation criteria.