As we advance in the last articles we talk about the loans for the unemployed (link) and the loans for pensioners explaining in depth the operation of this type of fast loans as well as its use and function in the market, in this article we would like to talk about one of the most demanded credits currently that is none other than loans for entrepreneurs
As its name suggests these loans are intended exclusively for those who have in mind to create a new business. We do not include loans for companies that we have already talked about on more than one occasion where the person requesting the money is a self-employed company with the difference that it is a business already in operation and established in the market.
We are going to focus now on the different existing loans in the market to create a company. To differentiate the different types of financing there are points.
Types of loans for entrepreneurs:
❶ First of all we are going to talk about the bank loans that are destined for entrepreneurs that are many and varied. In fact, almost all financial institutions in the country have a loan with these characteristics, although it is true that, on many occasions, the loan announced later is hardly feasible.
So let’s talk about each of these loans to see the differences between each of them.
Loan One : It is one of the entities that are betting most on this type of loan (perhaps because of the public subsidies received by the state that in a certain way obliges them to do a more social work and help promote entrepreneurship in Spain)
The loan offered by is called “Pyme Loan” and basically its mission is to finance the acquisitions of assets of the company that begins by buying industrial land, commercial premises… that is, the purchase of productive assets. Also apart from the purchase include the construction and the reform of these goods, yes, the financing has to have one of these destinations.
As for the loan, it is a long-term loan with more or less low interest rates and which are negotiated independently in each operation, that is, there will be operations with more interest rates and others with less, depending on the risk will vary interests.
Loan Two : The name of the loan they sell could not be more clear “First business loan” This loan is very different from the one offered by both in terms of amounts and repayment terms. This loan is granted to young entrepreneurs who need this financing to start their business project. The first feasibility analysis carried out by the bank to check whether the loan can be viable or not is the project presented by the entrepreneur.
As for the loan, the maximum amount is € 18,000 and the bank can give up to 80% of the requested capital. The interest rates vary according to who makes the request as well as the financial products that contract with the loan (insurance, policies…)
Maximum period of 5 years to make the return.
It is important to bear in mind that the bank does not only look at the feasibility of the project but also takes into account the staff behind the company looking at its history…
Loan Three : Within this financial institution we can talk about two credits for entrepreneurs. On the one hand there would be the “Loan for an entrepreneur” whose mission is to finance entrepreneur projects where self-employment is sought or the intention to sell the project abroad.
This loan if you finance 100%, you can get a shortage of up to 12 months and the maximum repayment term is also five years.
Loan Four : Another bank in the Catalan community that also bets on entrepreneurs. We can talk about your “SME Loan” for companies with a high level of solvency, no matter if they are small, micro, medium or large companies. They also value positively the companies that work with the public sector.
In second place is “Bstartup” which is a bank specialized in these matters.
Perhaps this option is not the best for an entrepreneur who wants to start, but if it can be another loan ” Entrepreneur Loan ” that now has all the features that make it an interesting financing for the person who wants to create a new business.
The maximum amount is € 40,000, has no opening fees, interest of 9.50% and is also intended for people who want to open a new company or created it in the previous 34 months.
Loan Five: Also this entity through its bank Microbank (dedicated above all to microcredits) offers loans of small amount to entrepreneurs up to € 25,000 for small companies (micro companies)
❷ Outside the banking system we can talk about private loans (loans between individuals) existing in the market focused on entrepreneurs.
Within this form of financing we can find micro loans, loans between individuals where people are financing other people to carry out business projects… (There are two types of platforms, those that invest in the form of loans and those that invest in the form of partners)
The crowfounding for example that is one of these formulas that the entrepreneur has to obtain money was regularized recently by the government making it safer for both investor and applicant to perform one of these financial operations. Although this formula is not 100%, a loan is a way for the entrepreneur to finance his project.
We can also talk about loans with endorsement in which the client can usually get the loan adapted to their needs but with the disadvantage that you need to guarantee the loan with a real estate guarantee to be able to take the operation forward. The usual thing in this loan is that the loan adapts both to the amount that can be paid from installments, in the form of making the payments as well as in the installments. (they are flexible credits)
Are there many other loans for entrepreneurs? Yes, would you give time to explain each one of them and how do you usually use them? Do not.
In conclusion, in the market there are many offers for entrepreneurs who need to get funding, the important thing is to know where to go based on our financial situation and understand that where in a place they tell us NOT somewhere else they can tell us YES.