In this article we will talk about mortgage loans for companies and SMEs, or what is the same, home equity loans. Starting a new business is not an easy task. Especially since it requires a lot of knowledge and enough capital to be able to do it. But, let’s face it, the normal thing is not to have the necessary money to start without help. Hence, it does not hurt to know the main mortgage loans for companies on the market. Would you like to know more about this topic?
Home equity loans for businesses and SMEs
Business home equity loans can be a very interesting financing option for those companies that own property. These must be free of charges or with little charge / mortgage to be used as collateral for the loan.
They are granted by both financial institutions and private equity companies. However, the conditions of the latter are much less demanding. The maximum amount will depend on the value of the property that is used as a guarantee, since a percentage of said value is offered ( usually a maximum of 30%) to be used in any type of expense.
Business mortgage loans are exactly the same financing formula as business mortgage loans, it is usual to offer these loans with those properties whose mortgage is settled or is minimal. However, there are credit companies that make exceptions depending on the real situation of the company or with an existing mortgage. Only in those cases in which the amount to repay an existing mortgage does not exceed 20%, the loan can be viable.
In addition to this, mortgage financing for companies can be proposed up to 10 years of repayment and in the format of only interest-free or through convenient installments of principal and interest.
Alternatives to business mortgage loans
Bank loans for businesses oriented to the self-employed, SMEs and companies
Business loans are a financial product directly aimed at the self-employed, SMEs and companies. With these credits, companies obtain liquidity immediately. However, today they are not usually granted in excess due to the high demands of banks to offer liquidity. Not only do they ask for a very high level of solvency, but the company must also be well established and demonstrate its credit capacity with a reduced Cirbe and without any type of incident such as Financial Credit Institution.
However, little by little some banks start to change their mentality and reopen the financing option. Hence, it is common to find certain entities launching products aimed directly at companies and businesses with difficulties. However, the conditions are still higher than those required by private equity companies. If you have doubts about whether we can grant it to you or your company, contact us without obligation.
Loans through public entities
Fortunately, the Administrations offer different lines of financing so that the business fabric of our country can continue to grow. Among the main loans and lines of credit from public entities, the following stand out:
Local administrations usually dedicate a line of expenditure to business grants. However these are as varied as there are municipalities in Spain. Hence, it is best to ask the city council directly or consult its website.
ICO lines of credit
The Official Credit Institute, or ICO, is one of the main sources of financing for companies in our country. You can offer up to a maximum of 12.5 million USD per customer to be used in one or more projects for the same company. Their interests are quite tight and they have up to 20 years to repay.
Although the money is public, the associated banks are in charge of managing the aid. However, the loan conditions are set by the ICO. It has several lines of credit open, so it is interesting to consult all of them to see which one is most suitable to cover the economic needs of our company.
Loans with mortgage guarantee for companies and SMEs
How and when to apply for mortgage loans for companies
The line of financing with mortgage guarantee for companies and SMEs from private capital is the only alternative way of financing in the event that the bank denies us the financing, either by a high CIRBE or by being registered in the delinquency records of RAI or Financial Credit Institution. Do not hesitate to request your mortgage loan for companies using our form or by calling us and we will study your case in detail without any obligation.