In recent years there has been an increase in entrepreneurs due to lack of job opportunities, especially for the younger ones.
Although undertaking is difficult, nowadays it is easier to open a business than to find a job. It does not matter if you have a lot of experience, several careers, or even speak two languages. The labor market is not generating employment, much less for highly qualified jobs, where competition is huge. And many unemployed people undertake their own projects because they are seeing that the years are passing by and unemployment benefits or other help or subsidies are running out.
So they end up considering the option of borrowing to set up a business to have a job and end the unemployment situation. And because of the lack of money after months without work, loans are often used to start a business.
Because if you ask what help is there to start a business, before looking for information or making the business plan you should know that it is better to apply for loans to young entrepreneurs than grants. Because in addition to being scarce, although the opposite is said in the information on the web, it is often more difficult to obtain grants for young entrepreneurs.
Keep in mind that there are many applications for young entrepreneurial aid and yet the budget allocated by public administrations is limited. As you can see if you are looking for information on your website.
So it is not a good form of financing for young entrepreneurs, because many are left without the money for their projects despite having fulfilled the bases of aid..
Not to mention that many of these young entrepreneurial grants involve carrying out a business plan in order to market the product or service, as well as important money investments to be able to get help. And many times it makes the entrepreneur invest more than he needed to start a business.
And in the best of cases, those who discover what help is available to open a business, meet the requirements, and apply for subsidies, collect the money months or even years later. So in the end the entrepreneur can not count on the money needed to start and start your business. That is why many banks and credit companies offer loans for young entrepreneurs and even without endorsement.
But not only do you need money to start the business, but it is also important to have a financial solution in the medium and long term, especially until the product or service is introduced in the market, if possible with a lack of capital amortization, that allows the entrepreneur to endure the first months without financial problems.
Since many of the new companies end up closing due to lack of financing due to not having enough clients. And to help you in your search for this type of loan without endorsement for entrepreneurs, the best option is to use an online comparator such as Credtext.
The best credits for entrepreneurs
But the offer of loans to entrepreneurs without endorsement is very broad, hence it is important to know which are the best.
That is why if you are looking for young entrepreneurial credits to have a cushion of money when setting up a business, these are the best entrepreneur loans without endorsement:
Bankern is one of the banks that offers credit for entrepreneurs within the financing lines for SMEs and the self-employed.
The Bankern entrepreneur loans are similar to the Dinamización Loan launched by Bankern to provide financing to self-employed workers and SMEs that need to liquidate or finance investments with fixed or variable interest rates.
Another option for bank loans for entrepreneurs Bankern is the long-term Pyme Loan that finances the purchase of land and the construction or renovation of premises and industrial buildings.
Another of the banks that offers financing for entrepreneurs is FDC, through the so-called Business Loan that is used to finance investments and liquidity.
The interest rates, necessary guarantees and the amount of the loan are analyzed in each of the loans for new FDC companies. So this type of business loan financing is useful both for a small business that simply needs a financial cushion or a medium sized business that has to undertake significant investments. Hence, this financing is used as young FDC entrepreneur loans.
Bank Sowell is another of the banks that provides loans for young entrepreneurs, but with specialized products and a large advertising hype to attract young entrepreneurs as clients.
On the one hand, Bank Sowell has an Entrepreneur Loan for entrepreneurs who are going to create a business as a form of self-employment or for more ambitious businesses that have an international vision. This type of loan young entrepreneurs come to finance up to 100% of the investment, with a fixed interest rate, and a repayment term of up to 5 years with up to 12 months of lack of repayment in which only interest would be paid.
Another of the financing lines for entrepreneurs is the so-called BStartup, a very specialized loan where you can apply for more than 60 offices that Bank Sowell has in Spain.
And that offers financing for startups because they are start-ups that have very differentiated business models from traditional companies, hence a differentiated risk analysis.
Bankate, one of the most important banks in Spain, also offers financing for new companies with the so-called Protection Loan for SMEs and the self-employed. It is a personal loan that also offers a hedge against increases in interest rates, which does not imply not taking advantage of the reductions in rates.
They are loans to open a business that needs an investment of money of at least 50000 euros, to be repaid in a term of between 2 to 5 years.
OneCatchy is another of the financial entities that offers financing for entrepreneurs with the so-called First Company Loan. A financial aid to support young entrepreneurs, given the growing entrepreneurial spirit we are experiencing in Spain.
And it offers credits for young entrepreneurs with a maximum of 18,000 euros as long as it does not suppose more than 80% of the amount of money requested, and with a maximum repayment term of 5 years. The interest rate will depend on each case based on the risk analysis as well as the link with the entity’s products.
Creditender is one of the entities, together with Bank Sowell, which offers more specific products for entrepreneurial loans without endorsement. In the first place, it has the Entrepreneurs Loan with a maximum duration of 24 months, whether they are self-employed professionals or newly created companies.
One of the great advantages of credits for entrepreneurs is that they have commissions of any kind: no opening, study, or formalization of the loan.
In addition, the Entrepreneur Loan without an endorsement has the advantage of offering loans to entrepreneurs up to 40000 euros and with a fixed interest rate, perhaps the worst of this loan, and with a maximum repayment term of seven years.
There are also other lines of loans for young entrepreneurs without endorsement, in this case for farmers and ranchers both self-employed as groups and agrifood companies that have a minimum activity of 12 months, with the so-called Agrifood Loan. In this case, the interest rate is fixed and it does have opening fees on the amount of money granted in the agro-food business loan.
Another form of loans to open a business is the so-called Pyme Loan that offers financing for entrepreneurs, stores and businesses, and small and medium-sized companies that are sufficiently solvent and that seek a solution to the typical problem of need financing for business that is going to be carried out. an investment in fixed assets, such as industrial vehicles, machinery, etc. The repayment term of this loan is 5 years, and it requires opening and study commissions.
Loans for entrepreneurs with financial credit institutions
Sometimes because of prolonged unemployment situations the entrepreneur not only does not have money to set up a business, but also has a bad financial history, having debts in files of defaulters.
In these cases, obtaining loans for entrepreneurs with financial credit institutions is difficult but not impossible, everything will depend on the amount of money requested and the guarantees that the young entrepreneur can provide.
Entrepreneurs are a high risk client for any bank or financial institution, so it is not easy to get loans for young entrepreneurs. Although they are also a client that can have a great journey if they manage to overcome the first year of activity.
But the case of entrepreneurs with financial credit institutions is a type of maximum risk operation that will be very difficult for a bank to finance because it involves granting new entrepreneur loans with defaults.
In order to obtain financing from a bank, guarantees should be provided, either in the form of a guarantee from a solvent third party, usually a family member or a financial partner, or in the form of a real estate guarantee with a mortgage.
In any case there are many loan companies that are willing to give financing to entrepreneurs without collateral and with asf, through personal mini-loans.
That is, mini loans for self-employed workers without a guarantee and a maximum amount between 1500 and 2000 euros. What can be a help for small business loans such as shops, bars, or online shops.
The main drawback of quick loans is that they have a very high interest and a very small return period. Anyway, the best financial solution to get loans without endorsement for entrepreneurs is to resolve the non-payment of the debt for which we are in financial credit institutions or other files of defaulters. Only then can we have a clean credit file with which we can request any type of financing for SMEs.
loans without endorsement for entrepreneurs
One of the most common financing solutions for entrepreneurs is to resort to loans. That is to say to resort to the lines of financing of the Institute of Official Credit, a public entity to which money can be requested with better conditions than the loans for businesses without endorsement of the bank.
loans offer different lines of financing for SMEs and entrepreneurs who are dedicated to export, want to internationalize their business, or be innovative. Although the has also taken out a new financing line for current expenses, called liquidity loans.
Although the most common destination for loans for self-employed workers and SMEs that they have undertaken, are the purchase of fixed assets for the activity: industrial vehicles and machinery.
However, although the depends on the State, it is traditional banks that actually grant these loans for entrepreneurs. So if you want to know how to get an you have to enter the website and see the list of all the financial entities that can place the financing lines for entrepreneurs.
Therefore, despite what may seem at the beginning, the reality is that getting an loan without a guarantee is very difficult. Because the bank that conducts the study also responds to the risk of default, even if it is the that grants the credit.
Therefore, the bank will continue to apply the same risk policy when it comes to giving young entrepreneurs credits charged to the funds. This makes it very difficult in practice to obtain entrepreneurial loans in the form of an credit without collateral.
Microcredits for entrepreneurs without endorsement
Although it is not a very traditional financing option for entrepreneurs, fast loans for self-employed workers and SMEs are gaining strength when opening a new business.
The reason is very simple, the microcredit entrepreneurs without endorsement unlike the loans are easier to get especially for those people who can not get loans for entrepreneurs without endorsement.
Either because having been a unemployed person does not have an income history or even has debts in a file of defaulters such as financial credit institutions. For those difficult cases as well as for those seeking loans to open a business that requires a small investment, micro-credits for entrepreneurs are the best solution. Because being mini loans of amounts less than 1000 euros, the requirements are basic.
However, the interest rate is very high, to compensate for the high rate of unpaid debts, and repayment terms are usually less than 30 days to reduce the risk. So a mini credit should only be used when I need financing for business that will generate income in the first month. Because if we do not have to apply for loans for entrepreneurs with a term of return to medium and term. But in addition to credit companies there are also some banks and financial entities that offer micro-credits for entrepreneurs, such as:
- Creditender : through its subsidiary MicroBank, it channels financing through micro-credits for entrepreneurs, with a legal form of self-employed with incomes of less than 60000 euros and micro enterprises with fewer than 10 workers and a maximum turnover of 500,000 euros per year. The maximum amount of these micro credits is 25000 euros.
- Galagasi : offers financing for entrepreneurs of up to 30000 euros with a deficiency of 12 months, and with micro credits of up to 25000 euros with the support of reciprocal guarantee societies.
- OneCatchy : offering mini loans of between 9000 and 36000 euros aimed at self-employed entrepreneurs and SMEs with a viable project. Within these microcredits for entrepreneurs OneCatchy offers financing for groups of micro companies, such as taxi drivers and kiosks.
As you can see, it is the private financial entities, such as banks and savings banks, that offer this type of financing operations. Because there are no, unlike what happened with loans for new entrepreneurs, the possibility of requesting microcredits.