MonthNovember 2018

Amazon Lending will arrive in Spain to offer loans to SMEs and the self-employed

Amazon Lending will arrive in Spain to offer loans to SMEs and the self-employed

More than 30% of entrepreneurs who applied for loans for freelancers obtained a “no” answer, according to a study by the Autonomous Federation (ATA) of June 2015. Although the figure has decreased compared to 2014 (36 , 6% of denied applications), are still too high figures. Creating a business is not an easy task and getting the funding we need is essential. Luckily, in Spain, new ways of financing our company are proliferating without having to go through a bank.

The new ways of financing our company

Amazon has announced that it will begin to market a line of credit for SMEs in Spain. Amazon Lending is a service that will offer financing to SMEs that sell on its platform. To get these new loans for freelancers we must access through an invitation. The credits will be granted based on the sales data of each company . Above all, the risks of the company, the inventory cycles or the frequency with which they work out of stock will be valued. Currently Amazon Lending offers loans for self-employed between $ 1,000 and $ 600,000 with a repayment period of between 3 and 6 months with interests ranging from 6% to 14%.

Until Amazon Lending arrives in Spain at the end of the year we can get financing in many of the companies specialized in loans for self-employed people . Currently there are two private equity companies that stand out when granting loans for SMEs.

What are ICO credits for self-employed?

The Official Credit Institute is an entity attached to the Ministry of Economy that seeks to promote economic activities to contribute to the development of the country . It grants loans to self-employed workers, entrepreneurs and SMEs through collaborating banking entities. It is a line of financing that acts through lenders , that is, grants loans with the intermediation of the entities. Depending on the chosen ICO line the term conditions, the interest rate will vary.

In order to access the ICO loans we must go to one of the collaborating banking entities, depending on the situation they will offer us a loan with them or through ICO. The credit institution will give the funds to the bank and the bank will transfer them to the self-employed person . According to the ATA barometer, almost 35% of the applications were denied, since it is the banking entities that assume the risk of default by the self-employed and the banks , in turn, respond to the ICO to repay the loan. that their requirements are as demanding as those of banking entities.

Avoid online fraud in 3 simple steps

Avoid falling into a hoax, learn how to identify an Internet fraud

One of the most recurrent modalities of current loans is online loans , which provide users with money that will bail them out instantly, as long as they meet certain simple requirements.

However, the same facility to access any of these credits is what makes these lenders are seen as possible scams, because users believe that it is not so easy for someone to disburse money so easily and without many demands.

For the Financial Superintendence of Colombia it is important that users are prepared to identify possible scams, therefore, as a money provider, it is important to communicate how you can identify the legality of this and other companies that offer the service.

1. Do not give money in advance

If the entity you used to apply for your credit asks for money in advance for credit studies, credit approval or improve your credit history, be alert! It is not legal for an entity to make this request in advance.

This is one of the most common forms of fraud , entities request money in advance to the user, when this finally delivers the amount requested, the entity argues that it can no longer make the credit or disappears and does not return to answer the applicant.

2.Verify the entities in the Financial Superintendency

If the place where you are going to request your credit definitely does not generate confidence and you want to be sure of its reliability, you must enter the page of the entity that regulates and supervises these entities, there you can find all the information you need to feel calm.

Our recommendation is that you enter # and inquire, if the entity with which you have communication appears in one of these lists, the most advisable thing is that you do NOT make the loan with them and look for an entity that you do not run risks with.

3. Disconfidence of low interest rates

One last warning that can work is to pay special attention to the extremely low interest rates in the credits, usually these are put to get your attention and finally ask you to give some money in advance to be able to make the credit that you requested.

Not that all the low interest rates are warning signs, but they can be the bait you have to step on to be a victim of a scam.

As you can see, these tips are very closely linked, however, there is something you should always pay special attention to: your intuition. If for some reason, a financial institution does not transmit security to you, consult with the regulatory bodies for its veracity.

We work every day to give you the best, we like to give you the necessary information so that you can defend yourself against possible scammers and be sure of the step you are going to take.