Your bank manager is not a neutral financial advisor: they are a professional with commercial targets, and one company learned this the hard way after paying a high price for a loan that never actually needed to be renegotiated.
During a strategic and financial planning consultancy we conducted in mid-2025, we came across the P&L statement of an agency with a level of debt far above what would be expected for a business of its size. The debt originated from a loan taken out to finance a specific commercial investment — a defensible decision in itself: using credit to seize a growth opportunity is a common business practice.
The problem was the decision made afterward, when the company had to deal with the increase in debt. Watch the content on our channel to explore the topic further:
And keep reading to understand how this decision affected the operation's cash flow and debt levels.
How business loan renegotiation works
Renegotiating a loan can reduce installment amounts and ease short-term pressure on cash flow, but that does not necessarily mean the company is reducing its debt or the total cost of the credit. A case we encountered during a strategic planning and financial management consultancy helps illustrate how this decision can become more complex than it initially appears.
To put the problem into perspective, consider approximate figures: the company had taken out a loan of around R$350,000, which, with accumulated interest, had nearly doubled. At that point, the account manager made a suggestion: given the upward trajectory of interest rates, the company should take out a new loan to reduce the monthly installment of the first one.
From within the banking relationship, the logic seemed reasonable, and the company accepted it without comparing it with other alternatives. The new loan added approximately R$300,000 to the debt, which reached around R$1.1 million.
The most important part of the story came afterward: the interest rate trend that had prompted the renegotiation reversed and rates fell. The company took on long-term debt to solve a short-term cash flow pressure that did not evolve as expected, leaving the business with a more constrained cash flow as a result of the decision.
How to evaluate a business credit proposal
Account managers may have commercial targets related to extending credit, selling financial products, and providing other services. This does not mean that the recommendation they provide is inappropriate, but it does show that there is a commercial interest in the relationship and that a company should not treat the bank's guidance as an independent financial analysis.
The case above also carries a second, less obvious lesson: the decision to renegotiate was made without adequately considering the macroeconomic environment, particularly the expected trajectory of interest rates. The company also lacked sufficiently structured financial management to challenge the potential impact of the transaction before signing it.
Financial management, macroeconomic indicator analysis, and relationships with financial institutions are not isolated topics: they are part of the same decision-making discipline, viewed from different angles.
For managers, the central point is simple: every credit offer, investment, or financial product presented by a bank should be treated as a commercial proposal — one that can be compared, negotiated, or rejected. A relationship of trust with the account manager can be useful, but it does not replace the company's own analysis of cost, term, risk, and cash flow impact.
How to negotiate with your bank while maintaining financial control
This does not mean distrusting everything or switching financial institutions every time you receive an offer. It means keeping financial decisions within the company instead of outsourcing them to someone who also has commercial interests in the transaction. A few simple measures can help a company compare proposals, understand the cost of credit, and assess the impact of a decision on cash flow.
Every significant credit facility should have at least one alternative quote — from another bank, a fintech, or a development financing program, when applicable — before the agreement is signed. It is also important to understand the product in its entirety: the effective interest rate, required collateral, transaction costs, early repayment terms, and applicable IOF tax should not depend solely on the brief explanation provided by the account manager.
Having someone responsible for validating these decisions — whether a CFO, controller, financial advisor, or the business owner themselves, depending on the company's size — also creates a second layer of analysis before signing. The goal is not to add bureaucracy to the process, but to turn a decision based solely on trust into one based on financial criteria.
None of this requires treating the bank as an adversary. The relationship can remain cordial and, in most cases, should. The point is to view it as a commercial relationship in which both sides have their own interests, and the company needs to conduct its own analysis before making a decision.
How to compare a business credit proposal
Do not compare a credit facility solely based on the installment amount or the advertised interest rate. Before making a decision, evaluate at least the following:
- Total Effective Cost (CET): this shows the overall cost of the transaction and allows you to compare proposals while taking interest and other charges into account. Looking only at the nominal interest rate can hide significant differences between offers;
- Term and total amount paid: a lower installment may appear more comfortable for cash flow, but a longer term can significantly increase the total cost of the loan. For this reason, compare the installment amount with the total amount that will be paid by the end of the contract;
- Collateral and transaction terms: check which assets, receivables, or other resources will be used as collateral, as well as the conditions that apply in the event of default. It is also important to identify insurance, fees, and other costs associated with the credit;
- Early repayment and other costs: before taking out the loan, understand the conditions for paying off or amortizing the debt early and what costs may apply to such a transaction, in addition to taxes such as IOF, when applicable.
Once you understand each proposal, compare the alternatives. Whenever possible, seek terms from more than one institution, such as banks, business credit fintechs, or development financing programs, when applicable.
The goal is not simply to find the lowest installment, but to find the financing structure