Apply for loans and public credits

Fund a project, undertake … And many other plans that sometimes, in order to carry them out, need financing. There are several options when requesting a loan. However, there are mainly two general ways to apply for credit. Private financing and public financing.

Obviously, each one presents its specific advantages and disadvantages. The first thing you should consider is what kind of financing you need.

To do this, you will have to analyze your economic situation, since in the case of public loans that route is often canceled. Next, in Good Finance, we are going to tell you the clues about each of these financing options, as well as advise you on which credit may be more appropriate depending on your needs.

Apply for loans and public credits

Apply for loans and public credits

Public financing can be a good choice, as there are several public bodies, such as the CDTI (Center for Industrial Technological Development), which offer credit to support companies with R & D & I projects. A clear example is companies with energy efficiency programs. What is positive about these loans? They do not need guarantees, you can also have an advance of up to 50%. Another point in favor is that the credit amount is not shown in the risk information center (CIR), since it is a public body that issues the loan.

Why is it important that it does not appear in the CIR? The public entity is responsible for collecting all the information on the payment habits of companies and individuals. In this way, you can identify the profile of a good payer, but also of the bad payer. It should be noted that appearing in the CIR is not a problem, but the rating that the system gives you.

Another advantage is that when you are granted this type of credit, you get a report with an innovative SME seal. Depending on the project, you can receive certificates that allow you to deduct fiscally.

On the other hand, these loans have certain disadvantages. Although in the beginning to apply for the loan no guarantees are needed, in some cases an additional guarantee must be provided. This will depend on the financial situation of the company, as well as the size.

Time is a key disadvantage factor, since generally, until the amount of the aid is received, the project cannot be started. The average time it takes between requesting help and receiving payment can be between 2 and 3 months.

Apply for loans and private credits. Urgent loans

Apply for loans and private credits. Urgent loans

One of the main advantages of applying for a private equity loan is speed. When you need credit urgently, the options for finding fast loans are reduced to private financing. When you apply for the loan, and once granted, in a few days or weeks you get the money. As our loans. In Good Finance we have various services, including tranquility loans, with which you can quickly obtain credit to solve urgent and unexpected payments.

On the other hand, with private loans there is no minimum amount , that is, you can ask for the amount you need. The same flexibility as for the investment. The credit you get can go wherever you want or need, since it is not subject to any public body. Nor does it need to meet deadlines, beyond those stipulated with the issuing entity.

The other side of private loans that may be less advantageous is the need to provide additional guarantees or guarantees. Given the flexibility, most request some kind of “insurance.” Also, in private equity loans the amount must be paid in full, including interest.

What type of credit to choose

What type of credit to choose

After reviewing some of the basic and key aspects of the two types of financing, the question that many of you will be asking. How to choose the most appropriate financing for my project? In order to choose, you must analyze the following factors:

Financial situation. The first thing you have to know is the solvency with which you have. Remember that in most cases they ask for an endorsement.

Project viability. Is it economically viable? With private capital it doesn’t matter where you spend your money, however, with public financing this point is very important.

Risk of the project. Another aspect to keep in mind is the economic risk involved. In the case of public financing you can check the investment limits, as they are always specified. Consult the public body in which you are interested and check if your needs match their limits.

Combine private and public capital. Although many times it is not compatible, you must take it into account. Depending on the body to which you request your public capital, you can make it compatible with private financing. Therefore, if you intend to combine them, before applying for your private capital loan make sure they are compatible.

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