Nearly a Third of Negotiated Businesses in Brazil
Delinquency in Brazil has reached alarming levels, reflecting the economic difficulties the country has faced in recent years. The Serasa Experian report revealed that almost a third of Brazilian companies are in debt, representing a significant impact on the national economy.
This increase in corporate debts, totaling around R$ 170 billion, is affecting not only the business itself, but also growth prospects and market confidence.
This situation reflects a multifaceted crisis that affects small, medium and large enterprises unevenly. As companies continue to struggle to honor their financial commitments, Brazil's economic recovery seems increasingly distant.
The extent of default in Brazil
Corporate default in Brazil is not a recent phenomenon, but it reached record numbers in March 2025. According to data from Serasa Experian, the total number of negative companies in Brazil already represents 30% of the total number of registered businesses.
This reflects a scenario in which financial recovery has become an almost impossible mission for a significant part of the Brazilian business class. The crisis generated by the COVID-19 pandemic, the high tax burden, rising inflation, and political instability are some of the factors that aggravate this situation.
Which Sectors Are Most Impacted?
Delinquency has mainly affected the service, commerce and industry sectors. Among these, the service sector was the most affected, due to the reduction in demand and the increase in operating costs.
Many companies that offer essential or high-consumption services were unable to generate enough revenue to cover fixed expenses and the costs of salaries, taxes, and suppliers.
- Service Sector: Restaurants, gyms, consulting firms, and service providers had to face significant reductions in demand, which generated a large number of debts.
- Commerce: Retail trade also suffered major losses due to the drop in consumption and increased competition from major market players.
- Industry: The industrial sector experienced difficulties due to the increase in the cost of inputs and the difficulty of accessing credit. Companies that rely on imported raw materials faced problems due to the fluctuation of the exchange rate and the increase in interest rates.
Impact of Default on the Market
The impact of default goes beyond the companies directly affected. The economy as a whole suffers from the decline in confidence and the difficulty of accessing credit.
Financial institutions, for example, are more cautious when granting loans, which could prolong the crisis and limit the resilience of many companies.
- Scarce credit: High default causes banks to increase the requirements for granting credit, making it even more difficult for companies to recover.
- Stagnant economic growth: The lack of investments and the low confidence of entrepreneurs in the domestic market end up negatively affecting GDP growth.
With the increasing difficulty of companies to honor their debts, the State ends up becoming the only savior, using public funds to cover part of that debt, which increases the fiscal pressure on the general population.
The Reflection of Default in Personal Finance
The increase in corporate defaults not only affects companies directly, but also impacts the personal finances of many Brazilians. Unemployment, decreased purchasing power, and high tax burden are side effects of this situation.
The Harm to the Brazilian Consumer
Corporate default leads to a reduction in the supply of products and services, in addition to generating price increases due to inflation. This is directly reflected in the domestic budget of millions of Brazilians. The cost of living increases, making it more difficult for families to maintain their consumption patterns.
- Unemployment and informality: The increase in business debts also affects the labor market, with more companies needing to lay off to reduce costs.
- Price increase: The scarcity of products and services can generate inflation, increasing the costs of the population's basic needs.
The Impact on the Real Estate Market
The default crisis also has a direct impact on the real estate market. The cost of financing increases with the increase in interest rates, making it more difficult for Brazilians to acquire real estate or invest in this sector.
- Difficulty for new investors: Delinquency and difficulty accessing credit make real estate investments riskier, especially for those seeking to finance real estate.
- Properties with a high risk of devaluation: In regions with high default rates and lack of economic growth, the value of real estate may devalue, impacting investment returns.
How to Invest in the Midst of the Delinquency Crisis?
While default in Brazil brings significant challenges, it also creates opportunities for investors who know where and how to invest their capital. One of the most resilient sectors during economic crises is the real estate market, especially those focused on dollarized properties and foreign markets.
Makan Capital offers Brazilian investors the opportunity to invest in the U.S. real estate market, with returns in dollars and less exposure to domestic market volatility.
Investing in the U.S. Real Estate Market
Makan Capital connects Brazilian investors to shovel ready real estate projects, which are ready-to-build properties in the United States. These projects allow for a short financial cycle, with high valuation potential and passive income generated by rent.
- High and secure return: By investing in dollarized properties, you can protect your assets against Brazilian inflation and take advantage of the appreciation of the dollar.
- Smart diversification: Investing outside Brazil, especially in a solid real estate market like the one in the USA, dilutes the risks of internal instability, ensuring more security for your capital.
The Protection Against Instability
Investing with Makan Capital is an effective way to protect your wealth during periods of economic uncertainty. The company offers professional management, legal security and high profitability, allowing investors to overcome domestic market difficulties and take advantage of international opportunities.
