According to the latest data from the ECB, the annual growth rate of lending for companies in the euro zone registered growth of 0.6% in October, the largest increase since January 2012. However, despite the fact that These loans are still falling, we are still a little away from pre-crisis levels, so many businesses have to resort to other ways to get the financing they need.
More loans for companies at a lower interest
The increase in the granting of loans for companies coincides with the decrease in the interest rate of these loans. For experts, that banks lend more money to businesses is precisely due to the cheapening of credit for companies: as the margins are smaller, they need to increase the concession to get better profits.
If we take a look at the statistics of the Bank of Spain, we can see how the average APR of loans for companies of up to one million euros has been considerably reduced : in September 2014 the average interest of these loans for companies was 4, 54% APR, while the average interest in September 2015 was 3.56%.
What do I do if the bank does not grant me a loan for companies?
Although the latest data are encouraging, the truth is that we are still far from the concession levels prior to the economic crisis. Many businesses are still denied access to loans for banking companies, but fortunately, they can turn to other financing methods to get the liquidity they need.
Credits for online companies
Thanks to the development of the Fintech sector, it is now possible to obtain merchant cash advance 100% online through https://www.paydaynow.net/merchant-cash-advances/. Currently, one of the best platforms to get financing is Spotcap, which offers loans for companies of up to € 100,000 to be repaid in 6 months for SMEs and self-employed workers. To contract this product we must have a minimum annual turnover of € 50,000 and an age of at least 12 months. Spotcap analyzes the requests very quickly and, in case of approval, enters the money in a maximum of 24 hours.
If we are self-employed and need money for our business, we can obtain it through P2P platforms such as CrossLend. Through this platform, we can get up to € 30,000 to return up to 5 years at an interest rate of 4.99% APR, which may be higher depending on the risk profile of the borrower. The application process is done entirely through the internet, so the processing will be much more agile and we will save time and paperwork.
Lines of credit for companies of Enisa
Another way to obtain financing for our business is to request one of the lines of credit for companies of Enisa, a public body under the Ministry of Industry, Energy, and Tourism. Through Enisa we can obtain financing to start a new business, to improve the competitiveness of our company or to open up new markets. Their concession requirements are more flexible than those of the banks (it is not necessary to provide guarantees) and the loan interest will be linked to the economic progress of the company. Enisa’s financing is exclusively for SMEs.