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 Checking creditworthiness
The best way in order to get concrete information on a Brazilian
company’s solvency and business history is from local information agencies, as
these have links to banks, public institutions and court records.
It may also be advisable to consult an international chamber of
commerce.
To be safe, it is best to work with a local partner who knows
the business
area well. Having a local lawyer is essential for business relations.
Retention of title
Simple retention of title clauses are valid in Brazil. The ROT
has to be stipulated in writing with the sealing of the contract.
It should describe the concerned goods in detail to make them
identifiable.
In order to be valid against third parties (e.g. acquisition in
good faith), the contract should be translated into Portuguese and registered
with the respective public register (Registro Público de Títulos e Documentos).
Mortgage (hypoteca)
A mortgage has to be registered with
the real estate registry.
If the debtor does not pay, the creditor may request that the respective court sells the mortgaged property in a public auction and be reimbursed the outstanding receivable.
Chattel mortgage
The title to the goods concerned is
transferred to the creditor until satisfaction of the debt, while the debtor retains
possession of the property.
The chattel mortgage has to be stipulated in writing and registered with the respective public
register.
Pledges (plenhor)
Debtor’s delivery of a transferable movable property to a
creditor. A special class here is the so-called “caução”, where the debtor
offers the creditor shares as security after registration in the share register.
Antichresis
A debtor transfers possession of income-earning property to a creditor until full payment. This is seldom used in Brazil.
Dublicata
A dublicata is a negotiable instrument which might replace the
use of a bill of exchange.
It is a copy of each invoice on a model form provided by the
Central Bank and is sent to the buyer for acceptance.
Other safeguarding measures
Guarantees
Bills of exchange
Irrevocable letter of credit promissory notes
Collection of receivables in Brazil
Safeguarding your credit sales in Brazil
Protecting your credit sales in other countries
Reproduced by kind permission of Atradius
Atradius copyright. The statements and recommendations made herein are for
informational purposes only and should not be utilised as a substitute for
professional advice in specific situations. Therefore we ask for your
comprehension that we can't take over any liability for this report. If legal
advice or other expert assistance is required the services of a professional
should be sought.
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