Clipping of news on Brazilian Culture, Law and Citizenship
12/20/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Central Bank announced a 30-day reduction of the receivables term, which would end the startup business system -
Created officially in 2013, Nubank quickly won adherents all over Brazil, especially for offering credit cards without annuity. In a short time, the rising startup, also saw their complaints grow in the Complaint HERE. In 2015, there were just over 1 thousand complaints, while in the last six months, complaints exceeded 2,1 thousand. Even so, in Complaint HERE, Nubank answered all the complaints and managed to solve 76.7% of the problems, which keeps the company with a reputation as "Best" according to the consumers' assessment.
See Nubank's reputation on the Reclame HERE!
This Tuesday, the 20th, however, the company can live an apocalypse after the announcement of the Central Bank in reducing from 30 to 2 days the receivables term, which would end Nubank's business system. "We've already done a few simulations, with two days to shut the light off and close the door," said Cristina Junqueira, co-founder of Nubank in Brazil, at 15 days, we would need almost R$ 1 billion of additional capital. Interview with Estadão.
According to Tecmundo's report, those responsible for this change are Finance Minister Henrique Meirelles and the current president, Michel Temer, who seek to "boost the economy". As explained by Estadão, today, the shopkeeper takes up to 30 days to receive the money paid via card by a consumer. Now the government seeks to shorten this process.
Undersigned: Nubank customers protest against Government's idea
The co-founder of Nubank says the move will be a problem as it will bring an extra cost to all credit card issuers. In addition, the smaller banks such as Nubank will suffer from this change, since the big ones in the Brazilian market - and globally - have a much larger financing capacity, such as Santander, Bradesco and Itaú Unibanco.
Junqueira explained the following about the case: "Currently, a customer who uses the card will pay the invoice, on average, 26 days later. Thus, Nubank, as issuer, will receive the money only after this term. With the money, we pay the acquirer (card operator), which takes another two or three days to pay the retailer. That gives the deadline of 30 days, "he describes.
Nubank's note sent to TecMundo site
Since 2014, Nubank has issued more than 1 million cards and has a percentage discount discounted from the amount passed on to the merchant - something around 5% (1.5% for Nubank and the rest for buyer and flag). If the time falls from 30 to 2 days, Nubank will be required to pay the buyer before receiving payment from the customer. For this, you will need to get resources in the market, so the situation is not good after:
"Change dramatically, reduce the deadline to two days, that would be apocalyptic for us. We've already done some simulations. With two days is to turn off the light and close the door. With 15 days, we would need almost R$ 1 billion of additional capital overnight. And even if the other banks lent the money, I have no margin to pay the monthly cost of debt. Today, my cost of capital is well over 1.5%. "
The changes will be presented tomorrow by the president of the Central Bank, Ilan Goldfajn. As the source notes, "analysts believe that lowering tenants' payouts can be fatal not just to some issuers but also to smaller buyers."
Source: Tecmundo (via Estadão)
Source: Claim Here
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This article was translated by an automatic translation system, and was therefore not reviewed by people.