The CNPJ Total Effective Cost (CET) is an indicator that shows the the real cost of a loan or financing hired by a company. It goes beyond the apparent interest rate and includes fees, IOF, insurance and other charges that impact the cash flow.
Many organizations focus only on the interest rate, without realizing that the built-in charges increase the final cost. Not knowing the CET can compromise cash flow, generate excessive debt and hinder sustainable growth.
To find out the CET, divide the total amount paid over the course of the contract by the net amount received and apply the formula provided. This way, you can compare different credit offers fairly and clearly.
Knowing the CET allows you to better choose your credit lines, adjust negotiations and keep your company financially healthy. This indicator is a crucial ally in ensuring that funding brings real and sustainable results, not just promises.