Practical guide on loans for entrepreneurs

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Taking the first steps in a project has never been easy, especially when it comes to create your own, solvent company from scratch and from which they can obtain benefits for its maintenance. Many entities, whether public or private, take this situation into account. Therefore, they offer various solutions to start with a business idea. In this post we tell you what are the loans for entrepreneurs that you have and what are their main characteristics.

Public or private loans?

As you already know, the financing options for entrepreneurs They have expanded in recent years. New have emerged private companies dedicated to this field. In this way, certain businessmen who may not meet all the requirements that a bank requires to obtain some type of financing, may meet your goals through other means.

One of the big differences that you can find between one option and another are the interest rates associated with the loan. In a banking entity, can even exceed 10% (as it happens in most banks). On the other hand, a European average ensures that in private entities the interest rate does not exceed that figure.

Also, there are other advantages that a request of this type in the private sphere outweighs the public sphere. You'll find more information about it in our post “6 reasons to choose alternative financing methods”.

As a first step, we recommend that you be very clear what do you need. If you need liquidity, help with receipts, payments to suppliers, taxes, etc. There are numerous types of financial aid the ones you can count on. You will have to choose which best suits your situation and taking into account the short- and long-term effects of your situation.

To make the decision you are going to make based on the needs of your new business a bit easier, below you will find some examples of loans. Their requirements are highlighted and where they come from, either from a bank or a private company. In this way you will be able to make a balance between several options, and start requesting information from those that interest you the most.

Public Loans

One of the most defining characteristics of this modality is that, in the most occasions, some must be met very strict requirements. Being within certain age limits, being a client of the financial institution, having the support of a solvent guarantee, not being within ASNEF, etc. And also if you are an entrepreneur, you must carry out a complete study of the viability of your business, for example:

  • a business plan good estructured
  • The well-defined and delimited budgets to achieve success in your project
  • A list of operations details you have with other financial entities (if you have them)
  • He register as self-employed
  • proof of payment to Social Security
  • Etc.

It is very possible that the documents that you have to present vary depending on the financial institution that requests it. We wanted to make a brief summary to present in this post some of the public loans (both state and bank) available:

ICO loans:

It is a public project that aims to boost the economy through the financing of entrepreneurs, SMEs and the self-employed. Compared to banks, they are very accessible and at a very competitive interest rate. If you need more information, visit our post “ICO loans: what you need to know”.

BBVA Click&Pay line of credit

Its purpose is the usual business payments, such as payroll, social security, taxes, etc. With a limit of up to 25,000 euros. If you want more information, click here.

Loan for the payment of Santander taxes

As its name indicates, it is a loan dedicated to the payment of business taxes such as VAT, Personal Income Tax or Corporate Tax. See more conditions here.

La Caixa financial discount

The purpose of this financing is to anticipate the amount of the promissory notes. If you need more information about this type of financing, consult the conditions here.

There are many possibilities within these services, and as we have mentioned before, investigate What options does each bank offer you? that you think convenient.

Private Loans

private financing offers even more possibilities than the public In recent years, this service has been on the rise, because companies and, above all, entrepreneurs, have realized the advantages of this less restrictive type of financing.

If you need more information about alternative financing, you can contact us. We are dedicated to find the best solution for you, focusing on long-term profitability and achieving the goals you set for yourself.

Although if you are not convinced, you can take a look at our blog. You will find very useful information about how to get liquidity for your business and thus arrive at far exceed the goals you had set for yourself

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