Credit Card Use Remains High Among Brazilian Small Businesses Despite Financial Risks

Credit cards continue to be one of the most utilized financial services among small and micro businesses in Brazil, with usage holding steady at 43% between 2022 and 2025, according to a Sebrae and IPESPE study involving over 6,200 entrepreneurs. While payment slip use has grown significantly from 27% to 46%, and small upticks have been seen in bank loans and equipment financing, the persistence of credit card use underscores its importance in daily operations. However, Sebrae warns that frequent reliance on credit cards, especially the revolving credit feature, can be detrimental due to exorbitant interest rates exceeding 450% per year, causing cash flow difficulties.

Sebrae President Décio Lima highlights that many small enterprises misuse credit cards as a financing tool rather than for planned purchases, putting their financial health at risk. To address these challenges, Sebrae has launched several support initiatives, including the Fundo de Aval às Micro e Pequenas Empresas (Fampe), which facilitated R$ 1.6 billion in loans in 2025—a 32% increase over the previous year—helping businesses secure credit with lower interest rates. Other programs like Acredita Microcrédito and Acredita Delas focus on providing accessible, affordable credit options, particularly for women-led businesses.

Experts stress that credit must be used thoughtfully and in alignment with clear financial planning to avoid harmful debt cycles. Businesses that strategically manage credit tend to sustain healthier cash flows, reduce financial risks, and exhibit greater longevity and resilience amid economic challenges. Sebrae advises entrepreneurs to carefully assess credit needs, organize their cash flow, and seek guidance before taking on any credit commitments.