Get Financing for SMEs and the Self-Employed if possible
For many small businesses and freelancers the big question is:
How to obtain non-bank financing?
In this article we will try to answer this question. We will talk about some of the forms of non-bank financing that exist in the market, among which is ours, that of WorkCapital SA, probably the best current solution in the working capital market.
And we will inform you of how this type of financing should be requested, what are its advantages, its risks and its possibilities. We want to help you ensure that your promissory notes or invoices are a quick ally to obtain liquidity.
Where is the financing obtained from in Spain?
Normally, in 80% of cases, financing in Spain is obtained through private credit financial institutions, such as Banco de Santander, BBVA, La Caixa, Banco Sabadell or Bankia, to name the best-known entities. .
Thanks to the loans guaranteed by the State through ICO, financing is already being granted to many SMEs and the self-employed so that they can maintain their businesses in the current situation of health and economic crisis, which is helping to recover our GDP.
Then there are other types of entities from which non-bank financing can be obtained and that correspond to public entities, such as ENISA (National Innovation Company) or CDTI (Center for Technological and Industrial Development), entities that are related to R+D+i and that are currently providing non-bank financing to companies related to the ICT sector, that is, to companies related to new communication and information technologies.
Are there alternatives to traditional financing?
Yes, of course, it is what is known as non-bank financing And it must be said that there are many types of financing of this type, such as:
- Many kinds of Crowdfunding
- Direct loans from organizations
- wealthy individuals
- Non-refundable grants
- The financing through the MAB (Alternative Stock Market)
- Or the MAF (Alternative Fixed Income Market)
- It deserves a special mention in Crowdlending, an option that has developed rapidly in recent years.
Crowdlending is a type of Crowdfunding (loan-based-crowdfunding) which consists of collective financing by means of a loan with multiple lenders and a single borrower, which is the company, or an individual.
That is to say, it is a financing that is done by a multitude of investors and that, through some Crowdlending companies and their web platforms, it is possible to put them in contact with each other.
With these tools, a double objective is achieved, which is that investors can obtain better returns on their savings by lending them to developers (P2P lending) and the second is that developers obtain alternative non-bank financing for their projects in a way agile, transparent, cheap and safe.
What are the advantages of non-bank financing?
It’s a type of agile financing, because everything is done online, it is also a type of financing that does not compute in the CIRBE (Risk Information Center of the Bank of Spain) which is very good since this greatly benefits companies when it comes to being able to obtain more financing in traditional banks, if they need it, because the Bank of Spain does not This type of non-bank alternative financing is recorded in its databases.
Another advantage is that, in order to obtain financing, They do not force you to contract other types of financial products (credit cards, insurance, pension plans or similar) as an essential condition for them to grant you the loan that the SME has requested, something that traditional banks do on a regular basis.
Finally, it should be noted that this type of Financing for SMEs and the self-employed it is very flexible for its immediacy. It values its client portfolio as a guarantee to obtain the desired financing through both promissory note discount and factoring.
