By JK Capital | September 2026
When a company seeks financing, the conversation usually begins with the interest rate. That is understandable: the cost is clearly stated in the proposal and enables a quick comparison. The problem is that debts with the same spread can have very different effects on cash flow, assets and the ability to make decisions.
A facility with heavy amortization can put pressure on a company that is investing. A long maturity may not compensate for clauses that restrict acquisitions or dividend distributions. Collateral over a key asset can limit future financing. A transaction without a grace period can consume cash before the financed project begins to generate returns.
The choice, therefore, should not be framed as a contest between bank lending and capital markets. It should begin with the company’s needs.
Working capital calls for one answer; expansion calls for another
Recurring, short-term needs often fit revolving facilities, receivables discounting or structures tied to the operating cycle. In these cases, availability, speed and the ability to increase or reduce the balance may be worth more than a very long maturity.
Industrial investment, unit expansion or an infrastructure project requires a different design. Cash is deployed before the project generates revenue. The debt must account for the implementation period, the ramp-up curve and delay risks. Grace periods and the amortization profile become central to the transaction’s economic cost.
When acquiring a company, financing must coexist with integration and some uncertainty around initial results. If amortization begins too soon, the structure may withdraw resources just when the buyer needs to invest in the acquired business.
Four instruments, four possible uses
Bank lending remains an important tool. It can be faster, preserve confidentiality and offer flexibility in disbursement. Long-standing relationships can also help when capital markets are not receptive.
Debentures often make sense for larger volumes, longer maturities and creditor diversification. They require documentation, financial information and a structure suited to investors. They are not exclusive to listed companies, but the scale of the transaction must justify the associated cost and effort.
Commercial notes serve maturities and needs that may be shorter. In January 2026, issuances reached BRL 6.4 billion, a record for the month according to ANBIMA. This growth shows that the instrument has gained ground among companies seeking more direct financing without necessarily arranging long-term debt.
FIDCs are particularly useful when a company has a receivables portfolio with enough history, data and diversification to support the transaction. Rather than relying solely on the company’s balance sheet, the structure also considers the quality of the receivables and how they are originated and collected. In the first five months of 2026, FIDCs exceeded debentures in number of transactions, according to ANBIMA.
CRI, CRA and other securitizations depend on the nature of the underlying assets and applicable rules. They can serve certain sectors and cash flows well, but they are not shortcuts. The legal quality of the receivables, documentation and collection governance are decisive.
The cost that does not appear on the first line
A proper comparison must include structuring, distribution, advisory, collateral, registration and maintenance costs. It must also assign value to the restrictions undertaken. A small difference in interest rate may become irrelevant if the company pledges a strategic asset or accepts a covenant with no room for normal business fluctuations.
Execution risk also matters. A company may spend months preparing an issuance only to find a less receptive market at distribution. It may also accept a bank proposal too early and fail to test alternatives. The process needs a timetable, competition among funding sources and a contingency option.
The questions that should come before the proposal
How much does the company truly need, and when? What will be the source of repayment? Which assets can be offered without compromising future moves? How much volatility can the business absorb before approaching a covenant? Is an acquisition, dividend distribution or major investment planned during the life of the debt? Does the company want only capital, or also a long-term relationship with new investors?
Once these questions are answered, products no longer compete on rate alone. Each source can be assessed by what it adds to or removes from the strategy.
This is precisely where independent debt advisory creates value. The work is not to push an issuance, but to organize the company’s needs, test available sources and conduct a comparable negotiation. The best structure may be bank-based, market-based or a combination of both. The criterion is to preserve cash and decision-making capacity while capital fulfils its purpose.
Sources
ANBIMA, “Empresas captam valor recorde para janeiro no mercado de capitais,” February 19, 2026; ANBIMA, “Mercado de capitais movimenta R$ 283 bilhões em ofertas puxado por FIDCs, híbridos e ações,” June 16, 2026; CVM Resolution 160 of July 13, 2022, consolidated text.
Informational content; it does not constitute an investment recommendation.