How will the freight advance credit line work?
The freight advance credit line is a product launched by Caixa to serve truck drivers throughout Brazil.
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On February 4th, Caixa launched an exclusive credit line for truck drivers. This product allows companies to advance payments for freight contracts contracted on credit.
The advance will work like a loan, but with attractive interest rates, they are charged from 1,99% per month.
In today's text, you'll discover the main details of this loan model and how to apply for it!
Don't miss it! See the index of this post below:
- What is the freight advance credit line?
- How will it work?
- Who can apply?
- How to apply?
- Banco do Brasil freight advance credit line;
- Summary of operation;
- Conclusion.
What is the freight advance credit line?
It is a working capital where the requested resources fall into the account of the independent transporters.
Organizations that contract freight services on a fixed term basis may request Caixa to advance payment directly to the independent transporter.
The truck driver receives payment in cash through a credit in their Caixa account, which can even be made available through the Caixa Tem app.
How will the freight advance credit line work?
This line is called Giro Caixa Transport. It was created by Caixa Econômica Federal so that carriers can advance payment for freight contracted in installments via a loan.
Upon request, the amounts will be deposited directly into the independent transporters' account.
One of the main advantages is that the driver will have access to receive the freight 120 days in advance, however, the company will only pay 120 days later, that is, when it would pay the truck driver.
The rates and fees applied may vary depending on each applicant's credit profile. However, the bank promises to keep them attractive and charge starting at 1,99% per month.
According to the president of Caixa, Pedro Guimarães, the freight advance credit line will give more income to truck drivers, at a time when fuel prices are rising.
The president also highlighted that previously, when truck drivers did not have receivables, they ended up taking out loans with interest rates of up to 20% per month, which was disadvantageous.
However, with a line where the interest rate is applied from 1.99% per month, there is a movement called income effect in the economy.
It occurs when there is a considerable reduction in this rate, so the difference can be used to cover fuel costs or make improvements to the vehicle, for example (my emphasis).
In this option, the interest is paid by the company that requested the line of credit.
Who can apply?
As mentioned in the first topic, the request is made by the company. The advance payment is made through a credit limit that is deposited directly into the carrier's account.
It can only be requested by companies in the transport and cargo sector that issue an Invoice via SEFAZ.
However, companies from São Paulo and Minas Gerais are not eligible, as these states are not part of the Technical Cooperation Agreement 01/18 – SVBA.
How to apply?
Those interested in hiring freight advance credit line must go to a Caixa branch and talk to their manager about hiring and how to proceed.
Banco do Brasil freight advance credit line
At the beginning of April, Banco do Brasil also launched its credit line for independent truck drivers.
The initiative aims to strengthen the transportation sector in Brazil, and is the result of BB's partnership with partner transportation companies.
With this financial product, carriers and shippers will be able to advance freight costs with interest starting at 1.79% per month, varying according to the customer's profile.
Freight payments will be scheduled for the next 120 days and the recipient must have an agreement with the carrier/PJ Shipper.
In a statement on its press page, the bank stated: “As the advance payment involves freight already contracted, the right to which will be granted to the Bank, its settlement is carried out by the company itself.”
The request of the freight advance credit line must also be carried out at the BB agency where the company is affiliated.
Summary of operation of anticipation
The transportation company that hired the freight services of an independent truck driver can advance this payment through a type of loan.
He then requests this amount from the bank where he has an agreement. The bank, in turn, releases the amount to the truck driver.
Then, the company will be responsible for settling this amount with the bank.
Generally, the amount can only be paid in one go, meaning there is no possibility of paying in installments.
The company will pay the advance within 120 days with the addition of interest agreed in the contract.
Conclusion
This financial solution certainly strengthens the bond between truck drivers and companies, and can also be beneficial for both.
However, when it comes to loans, it will always be disadvantageous due to the added interest.
In this case, it is best to always choose the company that offers the lowest rate.
Recommended reading: What is the digital work card for and how does it work?
