Often, self-employed workers and companies need access to external sources of financing due to lack of economic resources and liquidity, either to face different payments necessary to continue developing their work activity or to invest in aspects such as the purchase of capital goods. or, in the case of new entrepreneurs, to start from scratch with the business you want to develop.
What is a loan?
We often tend to confuse concepts, using loans and credits indifferently as synonyms. However, there are fundamental differences between the two, such as the possession of the money that they denote if it is one type or another of financing. This directly influences the interest to be borne by the investment applicant.
Thus, when we talk about loans we are referring to the contract by which a financial institution (which can be a bank or some of the new Fintech companies that have emerged thanks to the evolution of the Internet) gives the client (borrower) a certain amount of money. money previously agreed together with other clauses specifying, in an expressway, the term in which the capital will have to be returned, the interests that the client will have to request the financing, etc.
Interest on the loans depending on the type of loan
We have given clues, previously, that there are several possibilities of access to financing and in particular of loans. On the one hand, we find banking entities that stand as the most traditional and conservative form of financing. However, we also anticipated that thanks to the emergence of the Internet, the Paydaynow.net online lender has come hand in hand, allowing customers to find out about financial alternatives and request the financing they need in a completely different way to the one already established by traditional banking.
Therefore, the interest rate of the loan will depend on the type of company where we apply for financing.
Although there are other criteria for classifying loans (the best known for all is according to the term, where we find short, medium and long-term loans), we are going to address the criterion we have already mentioned: depending on the lender
The interest rate on loans from banks
When we think about applying for funding, the first thing that comes to mind is going from bank to bank and studying the different options that are presented to us. An option that, although it is attended by a multitude of applicants for financing, can sometimes lead us to support a much higher cost than initially expected.
In this case, the interest on 2-year bank loans oscillates between 5.5% -6.5 %.
Here we must bear in mind that the opening fees are going to crescendo as the loan repayment period is extended.
On the other hand, this type of interest also varies depending on the client in question, since if he has more solvency, the probability of the loan being repaid in full is much greater than if he does not have significant financial support.
These entities are going to try to get the customer not only for the loan itself but by offering different products such as cards, insurance … All these products or additional services what they will do is increase the main product of financing.
Interest on loans in private equity or venture capital companies
Another source of financing for companies is private equity companies. This type of companies is made up of professional investors who invest with a long-term vision, in the capital of companies with great growth potential.
The purpose of this type of investors is twofold:
- Invest in companies that meet these characteristics
- Establish themselves as strategic partners and advisors of the companies in which they invest.
What do you get with this? They are directly involved with the management of the company, guiding it on the right path and thus ensuring its investments.
But like everything, the interest rate of the loans in which the companies that access this type of financing incur, ranges between 10 and 15 %. Another con with us is that not any company can access this type of financing, because if you do not have an innovative idea and a high growth potential, you will not be granted the loan.
Loan interest in alternative financing companies
One of the financing modalities that has recently appeared is alternative financing platforms, among which we highlight crowdfunding platforms and Crowdlending platforms or loans between individuals.
In the case of crowdfunding platforms, they integrate those projects with a social, cultural, solidarity, humanitarian, etc. theme. to be funded by individuals. We can distinguish in this case, between:
- Crowdfunding of donation: individuals give their money in a disinterested way, so the interests are 0
- Crowdfunding of reward: where individuals who “invest” in their project, receive a reward that varies depending on what has been invested
- Crowdfunding of investment or Crowdequity: by means of which many individuals participate in small percentages of the social capital of the company.
In addition to the previous ones, crowdfunding presents a fourth subtype: Crowdlending platforms. With the emergence of new technologies and their implementation in the financial sector, participatory financing platforms have appeared in which private investors fund projects that require financing in exchange for a specific interest. What is the cost of this type of financing for SMEs?
Interest on loans for Crowdlending (average) is between 6-8% per year. But in MytripleA, thanks to the agreement with Reciprocal Guarantee Societies distributed throughout the national territory, you can get a 2% annual loan to be repaid in monthly installments. Interesting, right? Keep reading.
The interest rate on the loans granted by Crowdlending does not present oscillations as sharp as financing in other ways. And it is that, with this type of financing it is not necessary to hire additional products or services that the only thing they do is increase the cost of our financing (as it happens in the case of banks), so the cost of the loan in Crowdlending it will adhere to the predetermined interest rate, without added values.
On the other hand, the company can amortize your loan at the time you want it and in the same way, at zero cost. So we find another factor that will not increase the interest rate of the loans by Crowdlending.
Do not wait any longer and apply for your loan to enjoy the benefits of financing through Crowdlending!