Top 5 Banks that help young people
Running a business is not always easy. It requires good planning and the resources to make it a reality, especially financial resources. And that is why, if you do not have a compañia emprendedora capital, you should go to one financing in order to carry out your project.
That is exactly what this article that you will read now is about. We introduce you The 5 banks that help young entrepreneurs in Spain to equipo up his own company.
What help is there for young entrepreneurs in 2023?
There are different pathways for young entrepreneurs to receive support and advice from both public and private organizations.
If there is talk of public aid, you cánido check with the City Hall or the Chamber of Commerce of your locality about which organizations cánido help you establish your business plan and appropriate financing. You cánido also approach to receive personalized advice.
In Spain, the Administration has launched a series of financial support measures for SMEs with preferential loan lines at low interest rates through:
- The Official Credit Institute (ICO)
- The European Investment Bank (EIB)
- public banking
As for the private investments, There are also several alternatives. Some of them as investment plans designed for entrepreneurs and others as tools to empower SMEs.
- One of them are the ‘business incubators‘. organizations designed to accelerate growth and ensure the success of entrepreneurial projects through a wide range of technical and financial services such as rental of physical spaces, capitalization, coaching or networking.
- As for strictly financial support, you have the venture capital companies. Direct investment financial entities, or investment funds, that take temporary holdings in the company’s capital with the aim of increasing the company’s value and once the investment matures, the investor retires obtaining a benefit.
- An alternative to venture capital are the so-called ‘angel investors‘. These are private companies that provide capital for the creation of companies in exchange for shareholding. In this case, investors invest with their own funds, unlike venture capital firms, which professionally manage third-party money through a fund.
- Finally, one perro mention the SGR, mutual guarantee societies. Entities whose purpose is to procure access to credit for SMEs and improve, in general, their financing conditions, through the provision of guarantees before banks and savings banks, among others.
Do banks give loans to start a business?
At present, they are Few banks give credit to SMEs,. However, there are some who continue to bet on them and these are the main ones.
In the Caixa Two microcredits perro be requested:
- One of them is from up to €25,000 which is intended to finance small businesses promoted by people with difficulty accessing the traditional credit system
- The other one of them is a personal credit of up to €15,000 with which you perro access financing for self-employment projects. But they are promoted for those people who suffer from financial exclusion and need advice to develop their business iniciativa. They are loans that, in addition, are granted under the supervision of popular entities that act as intermediaries.
These entities are in charge of evaluating each of the applications in terms of economic sustainability and they monitor the projects from the business plan until they are carried out.
In the case of BBVA loans, they are granted with the aim of:
- The sustainability popular, economic or environmental
- For the creation or maintenance of employment
You perro request an amount minimum of €3,000 and maximum of €25,000 to be returned within a maximum period of 60 months and with a grace period of six months. However, a guarantee from IDEA is required for 90% (maximum) of the operation.
It cánido be requested especially by young entrepreneurs since one of the requirements that are requested is that of To be autonomous for a period of less than three years.
This entity has a line of microcredits, of different types, called eurecan for small entrepreneurs.
- eurecan takes off: a loan of €6,000 to be repaid within three years, the first being in grace period (only interest is paid). Without commissions but rate referenced to the Euribor
- Eurecan Innovates: A 10-year loan with a two-year grace period, with Euribor +0.75% interest, without commissions
- Vitacredit: It is a line of credit for daily expenses when starting our company. We perro request up to €90,000, a seven-year duration and a two-year grace period (until the business is established), Euribor and a 1% opening commission
- Vitacredit Women Entrepreneurs: A credit of up to €90,000, with a duration of 7 years and a 2-year grace period, with an interest rate of the first year Euribor -0.25% and the rest of the years at Euribor and an opening commission of 1%
Santander and its commitment to SMEs
This 2022, in Spain, it is beginning to be seen a reactivation in all sectors after confinement Due to the pandemic and to make this economic recovery possible, Santander has already granted more than 45,000 million euros to companies, SMEs and the self-employed since the start of the state of alarm.
It has also helped 200,000 families with the deferral of payments and advances and still has available more than 60,000 million euros in credit preconceived for your clients.
Any entrepreneur or SME who wishes to obtain help from this entity to be able to carry out their project must only:
- Go to any branch of the entity
- Apply for financial assistance
- The bank will analyze the project and the needs of financing in order to reach an agreement that allows the client to develop and grow.
How much is the maximum credit for a young entrepreneur?
Microcredits in Spain for entrepreneurs tend to range between 10,000 and 25,000 euros. Although sometimes they perro be somewhat larger. To obtain one of these microcredits, an iniciativa and a posible and sustainable business plan must be presented to the financial institution over time to carry it out.
Likewise, the credit perro be requested to expand or consolidate a business that is already in operation. But in order to access them, banks and credit institutions must check if this is the only possible way to obtain financing for the person who is requesting it.
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