With a challenging end to the year for SMEs, the Government announced the extension of the installment program for six months, although with modifications. What will be the impact of these changes?
The program Simple Feewhich allows you to finance purchases in up to 12 fixed installments, will be extended for six months, although with some changes. As official sources confirmed to Ámbito, the resolution will be issued before December 31, the date on which the program would lose validity, and the planned adjustments include a modification of both the interest rate and the installment limit.
This resolution that is ready to make official the Secretary of Commerce generated concern among SMEs, which expressed uncertainty about the impact that these modifications could have in a consumer context still affected by the economic slowdown.
One of the main changes to the program will be its exclusivity for small and medium-sized businesses (SMEs), large businesses being left out. The organization seeks to concentrate profits in the interior of the country, where banking competition It is more limited.
Another key issue that emerged during the meetings with the companies was the lack of incentives for the banking sector to maintain the program. In this context, it is proposed that banks negotiate directly with businesses and brands to offer benefits to customers. Furthermore, the Secretariat highlights that more than 80% of purchases are made in a range of 3 to 6 installments, which supports the program adjustment strategy. However, a Payway report contrasts with this vision, since until September the Simple Installment options in their 9 and 12 installment versions They achieved an increase in their participation in the program.
Payway Index 3rd Q 2024 – Credit card consumption.jpg
“The shrinking or disappearance of the quota plan by the Government brings complications for micro and small businesses. The concern is what will happen after six months, it gives us the task of how we can replace or continue agreeing. Not having quotas for us “It is a very complex issue,” said Ricardo Diab, Secretary General of CAME, in dialogue with this medium.
As for the interest rate, it is estimated that it could exceed 50%, from the current 40% but it is not yet confirmed. On the other hand, regarding the items, would remain unchanged.
What are the items included in the Simple Fee?
- White Line: air conditioners, air and/or ventilation conditioners, dishwashers, washing machines and dryers, kitchens, ovens and stoves, heaters and stoves, hot water tanks and water heaters, refrigerators, freezers and freezers.
- Dress: clothing for men, women and children (includes workwear, sportswear, everyday wear and all types of clothing accessories), as well as jewelry and watches.
- Footwear and Leather Goods: sports and non-sports shoes, wallets, suitcases, handbags and leather goods made of leather and other materials.
- Cell phones: with 4G and 5G technology.
- Furniture: includes all home furniture.
- Bicycles. It includes all types of bicycles, including electric bicycles, their parts and/or pieces.
- Motorcycles.
- Educational Services: It includes language courses, computer-related courses, sports and cultural activities. Does not include schools or universities.
- Mattresses: includes mattresses and box springs.
- Books: includes school textbooks and books.
- Glasses and Contact Lenses: prescription glasses and contact lenses, purchased at opticians.
- Bookstore Items: school library items (notebooks, stationery, pencils, pens, backpacks, pencil cases, labels, among others).
- Toys and Board Games: includes all products.
- Technical Services of Electronics and Home Appliances.
- tires, accessories, vehicle conversion kit to CNG gas and spare parts for automobiles and motorcycles.
- Musical Instruments.
- computers, notebooks and tablets.
- Lighting fixturesincluding electrical lighting fixtures with LED (light emitting diode) technology.
- Televisions and monitors.
- Perfumery: cosmetics, personal care and perfume products.
- Small Appliances.
- Sports preparation services, including gyms.
- Medical equipment: respiratory therapy equipment (oxygen therapy devices, aerosol therapy devices (nebulizers); furniture (orthopedic beds, bathing chairs, transfer chairs, grab bars); wheelchairs; orthoses, orthopedics and their parts (prostheses for amputees, leaflets custom, custom orthoses, insoles, custom corsets, walkers, canes, crutches).
- Machinery and Tools: drills, angle grinders, sanders, polishers, saws, coated electrode welders, TIG system welders, MIG-MAG system welders and vises.
- Shows and cultural events: theatrical works and concerts by national artists.
- Durable kitchen items: pots, saucepans, pans and griddles, all made of aluminum.
- Vehicle Repair Services Automotive and Motorcycles.
- Kit for home connection to public water and sewer services.
- Tourism: services and/or products to be provided entirely within the National Territory: long-distance bus tickets, air tickets, hotels and other tourist accommodations, tourist packages purchased through travel agencies, rental cars, spas, excursions and recreational activities , and regional products.
- Materials and Tools for Construction: sand, cement, lime, plaster, bricks, iron, sheet metal, openings, wood, ceramics, sanitary, pipes, pipes and their connectors, taps, membranes, tiles, paint, glass, hardware, wooden floors, tanks, couplings, couplings , plugs and work tools.
- Personal care services: hairdressers and beauty centers.
- Event organization services and Commercial Exhibitions: includes catering and photography.
- Alarm installation services.
- Kit for connection to internet services satellite.
- Electronic security: video surveillance cameras, closed circuit and monitoring systems, installation of security circuits.
- Home textiles: bedding, pillows and cushions, curtains, tablecloths, rugs, towels and towels.
The consumption expectation to 2025
Finally, according to the latest report prepared by CAME, SME retail sales fell 1.7% month-on-month in November and accumulate a decrease of 12.2% in the first eleven months of the year. However, in the seasonally adjusted monthly comparison, they grew 3.9%.
“We are going to close the year with negative percentages unlike the previous year, but there has been an improvement on a month-on-month basis. One point to highlight is that many products that had reached unattainable prices and had not been lowered, are beginning to drop. Entered next year if purchasing power continues to beat or match inflation and the value of the products will have more competitive prices, consumption can improve”, explained Diab of CAME.
Source: Ambito
