With the beginning of the crisis, the Spanish had to face, in addition to the lack of work, the difficulty of obtaining liquidity through financial institutions. Both individuals and companies saw banks close their doors to financing on request as they were considered unsafe.
The new financing alternatives
Due to this situation, new financing alternatives began to appear in the Spanish economy with which to obtain credit without having to go through the banks. Starting in 2012, different types of internet platforms began to emerge to offer financing to both individuals and emerging startups. It is the era of microcredit, crowdfunding, and crowdlending. And this time has only improved in addition to adapting to customer demands. For example, while some years ago people turned to microcredits due to the need to face deferred or unforeseen payments, today, the client who uses this type of financing has been updated.
More and more companies are looking for financing through private capital and want to get the best out of each house: the speed in granting liquidity, the possibility of applying directly through the internet and a longer period to return Debt.
It is not surprising that, just as customer demands are modified, banks and private equity companies are reformulated in order to offer the service that is requested. While banks try to streamline their management by creating internet platforms through which to operate, private equity platforms have been increasing the amount of money to lend and the repayment period.
Private equity: quick loans with repayment in long terms
In this new modality of fast loans we find a series of very interesting advantages compared to the old microcredits:
- They offer higher amounts and in the same period of time (in a few hours you can have capital in your checking account).
- Terms of up to 4 years to return the credit. In these cases, unlike with microcredits, payments are not made in a single installment, but are divided into months.
This type of fast loan allows you to request between $ 1,500 and $ 5,000. In order to apply for them, the following requirements must be met: being of legal age, having an income to repay the loan, residing in Spain, and not appearing in the delinquent files.
A clear example of this type of credit reformulated and adapted to the demands of new clients are those offered by Lenders.
However, the interest paid to obtain liquidity in a few minutes is higher than that required in private banking. It is clear that the speed of response has associated costs. In fact, the APR of this type of loan can exceed 100%. However, they are not without advantages, such as not requiring links for their concession or possible notary fees.