Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 9/21/2018
Imports in Brazil are primarily handled using traditional letters of credit (L/C) or collections through established banks with correspondent banking agreements overseas. To a lesser extent, U.S. exporters may choose to operate on an open account or cash in advance basis once they have established a trustworthy relationship with their Brazilian buyers. (Note: given high interest rates and intermediary spreads, Brazilian buyers are likely to push for an open account or cash up front. We highly recommend that U.S. companies work with Ex-Im Bank insurance or other guarantees to ensure payment).

Installments
In Brazil, it is common practice to pay for products and services via a series of installments. Due to low credit card limits and high interest rates, paying in installments is a widely accepted payment method throughout the country. Brazilian consumers are accustomed to financing various goods or services- from vacations, to household appliances, and even clothing and accessories. Most Brazilian households pay in monthly installments, so purchases are made if they can be accommodated into the household’s monthly budget. By paying in installments, buyers benefit from greater purchasing power and lower impact on their monthly budget. According to the Brazilian Association of Credit Card and Services Companies (Abecs), 62% of consumers who use credit cards purchase in installments without monthly interest.
 
Credit and Collection
Credit information on Brazilian companies is available for a fee from Dun & Bradstreet, (http://www.dnb.com.br), Equifax (http://www.equifax.com.br), or SERASA (http://www.serasaexperian.com.br), a Brazilian commercial information service company which recently merged with the Irish firm EXPERIAN. In the event of a commercial dispute or non-payment by a Brazilian importer requiring legal action, the U.S. exporter should contact a reputable legal firm with experience in international collections. Local collection agencies do not handle international disputes. The U.S. Commercial Service in Brazil (http://www.export.gov/Brazil) can provide a list of law local firms.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



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