Private loans in Spain can no longer be considered a fad. More and more small and medium-sized companies are joining crowdlending, or loans between individuals, and do not set foot in a bank to obtain financing. In addition, the appearance of crowdlending has allowed thousands of investors to allocate their money to companies of their interest with which to obtain much greater benefits than those obtained through financial institutions.
About Crowdlending platforms
Crowdlending platforms have been operating in Spain with good results for investors and companies seeking liquidity, since last year 2012. According to the Spanish Crowdfunding Association and the University of Cambridge, these platforms have been gradually growing in terms of investment . In fact, they took off in 2012 mobilizing around 10 million dollars, in 2013 they managed to reach 29 million dollars, in 2014 they exceeded 61 million and during the previous year they have managed to exceed this excellent figure. In fact, loans between individuals have managed to mobilize 30 million dollars during the past year, compared to 20 million of the 61 that moved during 2014. According to forecasts, credit between individuals is expected to continue to grow during the next years as an alternative to loans granted through more conventional methods, such as financial institutions.
The loans obtained through these types of platforms are usually intended to defray investments in fixed assets, to obtain working capital or to help expand the firm both within and outside the national territory.
What are the platforms to invest capital as a private lender or to get money from private capital?
Among the most well-known crowdlending platforms worldwide, we can undoubtedly highlight the presence of Funding Circle, which began its journey in the United Kingdom back in 2011, continued to expand in Germany, and came to our country at the end of 2014. Since then It has become one of the platforms to obtain investment from private lenders with the best results on the Spanish scene. In fact, since they landed in our country, they have moved more than 15 million dollars from the hands of more than 3,000 investors who have lent capital to more than 210 companies in our country.
And it is not surprising that it works well if we take into account that companies interested in obtaining private capital investment through this platform must offer attractive security conditions for private capital investors: in fact, all SMEs Those who want to request investment through Funding Circle must meet some minimum requirements: invoice $ 100,000 per year, be up to date with payments and have at least two years of activity.
Interested SMEs can apply for loans ranging from $ 5,000 to $ 250,000 in terms from 6 months to 5 years and with a nominal interest that ranges between 4.79% and 21.78%. In turn, depending on the term requested for the return, the platform charges interest of between 1 and 5%.
Once the project to be financed is accepted, it remains on the web for a total of 21 extendable days so that interested investors can consult it, investors that are divided into two types:
- Private lenders, who cannot invest more than $ 3,000 per project or more than $ 10,000 per year.
- Accredited lenders, with no investment limit (institutions, individuals with incomes of more than $ 50,000, companies with more than 2 million turnover …)
In exchange for their investment, the lenders obtain a return of 3.79% to 20.78% that they receive monthly and have a delinquency guarantee contained in 2.6%.