Getting funding for your company in Spain is one of the main objectives for entrepreneurs. Unfortunately, finding funding is not always easy which can complicate the launch of business activity. While looking for investors is not the easiest, it is the way many professionals are able to transform a brilliant idea into a promising project. Here are some tips to help you get the capital to start your own business.
Since the bubble burst in 2008, it has become much more difficult to convince banks in Spain to grant loans to companies and to individuals. However, most financial institutions will still offer financing solutions to the most creditworthy companies.
Furthermore, the Instituto de Crédito Oficial (ICO) has specific loans for entrepreneurs. The ICO is a public bank associated with the Minister of Economy and Spanish Competition and it finances self-employed investment projects, SMEs projects and those of public and private institutions of less than 10 million Euros. Resorting to this organisation is an opportunity that will allow you to obtain the necessary funds to implement your project.
Business angels are individuals who decide to invest their money in financing a business in Spain. However, to succeed in someone supporting your business, you must be convincing. You have to sell your idea and demonstrate the benefits in order to captivate the attention of these potential investors. This type of financing in Spain is interesting but you must first find out if you are willing to give up part of your company temporarily to investors. This type of collaboration is perfect for young entrepreneurs who need financial and support for decision making. In fact, business angels are mostly seasoned professionals who, with their experience, turn into genuine mentors for the company.
This new technique is becoming more and more prevalent for financing companies in Spain. It uses the Internet to reach a source of investors. Through crowdfunding, users can participate in a collective platform whose main objective is to raise funds to finance an idea or a project. Everyone can give as much money as they want to a project. The method is increasingly popular with individuals looking to invest in companies that they know really well. The transparency of crowdfunding is what has made it successful and the number of investors is increasing. In Spain, the most well-known crowdfunding portals are lanzanos.com and verkami.com.