The financing of companies had always been linked to financial institutions, a traditional market with conditions, sometimes inaccessible to the predominant market of SMEs and self-employed workers. Due to the crisis and the rise of new technologies, a new alternative for more ethical and efficient financing for companies, crowdlending, began to materialize in Spain.
Although crowdlending is increasingly established in Spain, it continues to generate fears and uncertainties. That is why we are going to solve the doubts that usually arise when requesting financing through crowdlending. If you want to solve all the doubts of funding through crowdlending, read on!
1 What is financing through crowdlending?
Crowdlending is a collective financing alternative where private investors (or companies) lend their money to companies (or other private investors). Therefore, it is also called P2P loans or loans between individuals.
Crowdlending platforms intermediate the operation between both parties to facilitate the procedures. Therefore, the financed company does not have to establish connections with all investors. You can dedicate your time to the important activities of your company.
2 Who can finance through crowdlending?
Depending on the type of public that wants to finance itself, we can divide this alternative financing method into two types.
- Financing for individuals
- Financing for companies
In this case, we are focusing on financing exclusively for companies. That is, financing through crowdlending can be requested by any company, self-employed or entrepreneur with financing needs for any project or activity with a professional purpose, that is, it can finance both circulating and investment needs.
MytripleA focuses on financing only companies, freelancers, entrepreneurs or SMEs.
3 What differences does funding offer through crowdlending?
The main advantage, compared to traditional banking, is obtained thanks to the direct connection between the financing of business with a direct investment of individuals (or other companies). As they are less structured entities, they can offer more advantageous and fair conditions both for investors and for financing.
In funding by crowdlending, investors allocate their money to the real economy, which implies that they know the specific company to which they are financing.
Here we list some of the advantages offered by crowdlending financing.
- Greater speed in management
- No commission for amortization
- No small print
- Without hiring additional products
- Online procedures
4 How do I apply for funding through crowdlending?
Funding through PaydayNow.net allows you to apply for the loan online, available 24 hours a day, 7 days a week, making it more convenient and faster.
You also have the possibility of not using CIRBE, that is, your debt will not be public for banks, which means having more healthy and competitive accounts.
MytripleA offers you a fairer price and treatment without additional products or small print. To apply for financing through MytripleA you just have to follow three simple steps:
- Apply for the loan
- Analysis of the project, MytripleA analyzes the information and, where appropriate, approves the request.
- You receive your money
5 What requirements do I have to fulfill as a company?
From MytripleA we operate with the motto of granting security to the investor and at the same time offering to finance to as many companies as possible.
The main requirements that you must fulfill as a requesting company are to have positive own funds, to carry out the activity in Spain and not to present incidents of payment. Sometimes the personal endorsement of the partners of the company or an endorsement is requested through the Reciprocal Guarantee Societies.
6 Who can grant a guarantee for funding by crowdlending?
As we have said, on occasion, an endorsement will be necessary to grant the loan. On the one hand, the partners of the company can provide an endorsement with their personal funds.
On the other hand, the Reciprocal Guarantee Societies (SGR) have as their corporate purpose to facilitate access to financing for SMEs in Spain. The SGRs are financial entities that support the financing operation and provide advice and financial training to the finance company. MytripleA has agreements with SGRs distributed throughout the national territory, which provide the guarantee to companies. Thanks to this guarantee, greater confidence is given to the investor since the transactions guaranteed by SGR are identified in Circular 4/2016 of the Bank of Spain as operations “without appreciable risk”.
7 What are the interest rates on the loans?
The interest rates depend on the applicant company, its history, and particular characteristics, as well as the conditions of the operation. The interest rate arises from the risk-return ratio, that is, the greater the risk of an operation, the greater the profitability of the investor.
In MytripleA you can get a loan from Euribor + 2 %, thanks to the guarantee of the Reciprocal Guarantee Companies.
8 What are the terms of financing through MytripleA?
Through MytripleA, businesses can obtain financing from 1 month to 5 years. In the case of short-term financing, the return of the principal and interest can be given when due. On the contrary, for longer-term loans, the refund will be through monthly installments.
9 Can I repay my loan early?
Yes, in MytripleA you can amortize your loan totally or partially without any cost and whenever you want. When this happens, the investor receives in advance part of the invested capital, which may be reinvested in other operations. Thus, everyone wins.
10 How is crowdlending funding regulated?
Crowdlending is regulated by Law 5/2015 MytripleA. The law obliges crowdlending platforms to be registered in the Special Registry of participative financing platforms.
MytripleA is the only crowdlending platform with a Payment Entity license supervised by the Bank of Spain (nº 6869) and also with a Participative Financing Platform License granted by CNMV (nº3).