Business Loan

[LosInnocentes]

Hi, I am looking into starting up a new Business and require a loan. Yes, I know that that things are very tight at the moment, but I have a reasonable deposit and my own home, without a mortgage, as security. I will need to borrow around 65'000 Euros, and was wondering if anybody knew who the best banks were to approach at the moment ?

[Wizbit]

Your chances are slim, but if you have a sound business plan and a half-decent track record and deposit to offer, then you might have a glimmer of chance by approaching the people who you bank with at the moment.

[Tyler]

Your chances are slim, but if you have a sound business plan and a half-decent track record and deposit to offer, then you might have a glimmer of chance by approaching the people who you bank with at the moment.

That AND : Are you a resident here in Spain; do you or have you ever paid into the system here; have you a mortgage here; have you any security to offer in addition to your deposit; what means do you have for paying the loan back.... ?

[LosInnocentes]

Thankyou. Do either of you have any first hand experience of this, and if so have you any tips to offer me ?

[Tyler]

Thankyou. Do either of you have any first hand experience of this, and if so have you any tips to offer me ?

I went through the process a few years ago, when borrowing money was much easier than it is now (and even then it was quite difficult !). All I can really say to you is that you shold not underestimate the importance of putting together a clear and concise business plan (In Spanish !) that demonstrates that you undertand the Business itself, the daily finances and running costs, that you have a good deposit and security to offer, and that you have means to pay back the loan. It will be tough going, and you might want to get a Gestor to lend a hand in doing this.

[LosInnocentes]

Thanks Tyler. We are under no illusions that things wil be in any way easy, but need to fully exploit the opportunity that has come our way so that in 20 years time we can't say that we didn't do everything that we could to make it happen.
Thanks again for sharing your advice.

[NowayJose]

... I have a reasonable deposit and my own home, without a mortgage, as security...

Sadly, at the moment the thinking of the Banks is that the last thing they want is further property on their books in the event of you defaulting - they want to know that you have other means of repaying the loan if you should be unable to make a go of the business.

[Beachbabe]

Lots of luck Los Innocentes ! I hope everything turns out as you hope !

[LosInnocentes]

Nothing positive to report as yet. We have been tuned down flat by two Spanish Banks, and are looking into the possibility of taking out a mortgage on the property that we already own in order to release the capital that way.Our Asesor says that the chances of it being accepted are 50 / 50.

[SilentBob]

Hi, I am looking into starting up a new Business and require a loan. Yes, I know that that things are very tight at the moment, but I have a reasonable deposit and my own home, without a mortgage, as security. I will need to borrow around 65'000 Euros, and was wondering if anybody knew who the best banks were to approach at the moment ?

Just out of interest, which Banks have you approached so far ?