The number of defaulted companies in Brazil grows

The number of companies in Brazil with debt increased by 5.02% in February 2019, compared to the same month last year.

The survey was carried out by the National Confederation of Shopkeepers (Confederação Nacional de Dirigentes Lojistas - CNDL) and the Credit Protection Service (Serviço de Proteção ao Crédito - SPC).

Banks and financial companies hold about 70% of the total debt. Therefore, this sector was the segment that most failed to receive from other companies.

Each indebted company has, on average, two accumulated financial arrears.

Default, without prior notice, reduces the ability to pay, directly affects cash flow, can cause losses for companies and can lead to bankruptcy.

This problem also affects the population. In 2018, more than 62 million Brazilians ended the year indebted. This represented an increase of 4.4% compared to 2017.