Home Equity for companies: how much does it cost to invest in business growth?

# Translation In a scenario of high interest rates and more restricted credit for businesses, finding financing alternatives with lower costs is a priority for entrepreneurs. In this context, Home Equity, known as a loan with real estate guarantee, has been consolidating itself as one of the most competitive modalities in the market. The operation allows entrepreneurs to use a residential or commercial property as collateral to obtain credit at rates significantly lower than traditional credit lines. The property remains in the owner's possession throughout the contract and can continue to be used normally. ## What is Home Equity for businesses? It is a credit modality in which a property is offered as collateral for the operation. In return, the financial institution provides funds that can be used freely in the business. In practice, the process works as follows: - The entrepreneur offers a property as collateral; - The institution conducts credit analysis and property valuation; - The amount released can reach up to 50% of the property's value; - After approval, the funds are deposited into the company's account; - The property continues to be used normally by the owner. Because it features real collateral, this modality typically offers more advantageous conditions compared to other business credit lines. ## How much does it cost to hire a Home Equity? One of the main advantages of Home Equity lies in its financial cost. While some business credit modalities can exceed double-digit monthly rates, Home Equity generally operates at significantly lower costs due to reduced risk for the financial institution. In Inter's case, rates start at approximately 1.0% per month plus the IPCA. In addition to reduced rates, the entrepreneur finds other financial benefits: - Lower installments; - Longer payment terms; - Possibility of contracting amounts from R$ 70 thousand; - Greater predictability in cash flow; - Less financial pressure on the company's operations. Before hiring, it is important to evaluate the Total Effective Cost (CET), which includes interest, fees, insurance and other charges of the operation. ## When is it worth using Home Equity in the company The service is most indicated for projects that generate financial return or increase operational efficiency of the business. The most common applications are: - Company expansion; - Reform or modernization of facilities; - Purchase of equipment and machinery; - Working capital formation; - Inventory contracting; - Financial restructuring; - Consolidation of high-interest debts. Many entrepreneurs use this modality to replace more expensive liabilities with a lower-cost debt, improving the financial health of the business. On the other hand, credit should be contracted with planning. Since a property is linked to the operation, it is fundamental to ensure that the company's cash flow is sufficient to meet payments. ## How to hire a loan with real estate guarantee? The hiring includes the following steps: - Credit simulation; - Submission of personal and property documentation; - Credit analysis; - Technical property appraisal; - Contract signature; - Guarantee registration with the notary; - Fund release. At Inter, after completion of the steps and operation registration, the approved amount is made available to the account in reduced time, allowing the company to use the funds quickly. ## What are the main advantages of Home Equity for businesses? In addition to more competitive rates, the modality offers a series of benefits for entrepreneurs seeking long-term credit. The main differentials are: - Rates lower than traditional loans; - Possibility of using residential or commercial property; - Property remains with the owner; - High-value credit; - Extended payment terms; - Freedom to use funds according to business needs; - Increasingly digital process. For companies that own real estate assets and need resources to grow or reorganize their finances, Home Equity can represent an efficient and strategic alternative. Watch the video with tips and useful information on the topic. Read more Inter stands out in integrity and wins the Pro-Ethics Seal from CGU What are the advantages of bringing banking and investments together in one place Which stocks are the largest dividend payers? ## FAQ: Frequently Asked Questions about Home Equity for businesses **What is Home Equity?** It is a loan modality with real estate guarantee, in which the property is used as collateral for the operation while the credit is being paid. **Can I continue using the property?** Yes. The property remains in the owner's possession throughout the contract term. **How much can I contract?** The amount can generally reach up to 50% of the property's appraised value, depending on credit analysis. **Can the funds be used for any purpose?** Yes. The money can be used for working capital, company expansion, equipment purchase, debt payment or other business needs. **Is Home Equity cheaper than traditional business loans?** In general, yes. Since there is real estate collateral in the operation, rates are usually significantly lower than those charged on unsecured lines. **Can I use a residential property as collateral?** Yes. Many institutions accept both residential and commercial properties, as long as they meet the valuation and documentation requirements.