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:

Lender Quantity Cost Requirements Contract
Iwoca € 500 – € 50,000 From 3.50% / month
No commissions
  • Companies with 4 or more months of life
  • Companies located in national territory
  • For self-employed or limited companies
Apply for
Spotcap € 500 – € 100,000 0.50% – 4.00% / month
Opening commission: from 1.00%
  • Registered companies in Spain
  • Minimum annual invoicing of € 25,000
  • Business with at least 12 months old
  • Need to have the latest financial documents of the company
Apply for

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.