Alternative financing for SMEs in Spain
Business Angels as a source of alternative financing
These are people from the financial or business world with extensive economic and strategic knowledge. They invest in innovative companies or start-ups in their first years of existence , where in addition to the contribution of capital, they get involved in the project, contributing their experience, contacts and own experience.
Therefore, they could be defined in the following 4 key points:
- Shareholding participation
- High return on investment
- Experts in business and finance
- Companies with great growth potential
Alternative Market for the financing of companies
It is a market focused on small and medium-sized companies with reduced capitalization . It operates in a similar way to the stock market but with customized regulation and adapted costs and processes. The Mercado Alternativo Bursátil is managed by Bolsas y Mercados Españoles and supervised by the CNMV. The key points are:
- Expanding companies
- A “Registered Advisor” helps in the process
- Access to the stock market
- Independent to the Stock Exchange
Issuance of debt as a source of alternative financing
This alternative to financing consists of the issuance of financial securities in the form of debt . It is mainly carried out to deal with payments or short-term investment projects, especially for the most immediate payment commitments. This alternative financing source is available for both private and public companies and its key points are:
- It can be done by the banks themselves
- Risk of default
- Debt rating agencies evaluate the risk of the operation
Startup incubators as a financial alternative
Startup incubators are focused on innovative projects that need initial funding to start up the company. For this they make an initial contribution of capital and continuous mentoring. In return, and as a rule, the incubator obtains shareholding . This would be the summary of its characteristics:
- Shareholding participation
- Access to a network of contacts
- Filters to access
Alternative financing through Crowdfunding
Within the sources of alternative financing, collective financing is one of the most affordable options that companies can access. Below, we tell you some varieties of financing by crowdfunding.
Alternative financing by Crowdequity
The main characteristic of crowdequity is that investors acquire a part of the company’s participation . The companies obtain financing from private investors in exchange for a compensation in the form of shares. Companies can accentuate links with their investors to increase sales. Therefore his summary would be:
- Capital increase
- Shareholding with the right to dividends
Crowdlending as an alternative for bank financing for SMEs
It is one of the financing alternatives for SMEs with more followers today and one of the most widespread in our country. Through this financial alternative of loans are many SMEs that have managed to meet their financial needs.
The company financed through crowdlending obtains a loan that is financed entirely by private investors.
- Investors are not part of the company
- Fast and agile financing
- No need to purchase additional products
MytripleA as a crowdlending platform for companies, allows you to access financing with a fairer deal and price, quickly and easily and by completing all online procedures. In addition, you do not have to buy any additional product, so it does not make your loan more expensive. It also offers you the possibility of repaying your loan early without additional charges, that is, the financing you need without fine print!
Reward Crowdfunding as an alternative
In this type of crowdfunding financing, the company offers a product or service in exchange for contributions of money , mainly that of its main activity.
- Not available for all companies
- Promotion of products or services
Crowdfunding of donation as an alternative
It is the only alternative to traditional financing where companies are financed without having to pay a consideration for it .
Most of these loans are made for solidarity reasons or projects with a strong attachment or personal attachment . Investors do not seek to profit from the contribution, but they do it altruistically.
- Solidarity projects
- No consideration is necessary
These are some of the alternatives to bank financing that you can access as a company, if you want to know more, consult other 7 methods to finance your company.
Reciprocal Guarantee Societies, a very important role for business financing
The Reciprocal Guarantee Companies can help companies to obtain alternative financing . The SGR are companies that guarantee the loan operations. The SGRs take care that the investor (whether private or a bank) receives 100% of the capital invested plus interest on the loan in which he has invested his money.
What benefits do I get as a company?
Here are some of the advantages of obtaining the endorsement of an SGR:
- Ease of access to financing
- Greater confidence on the part of the investor
- Financial advice and training
MytripleA collaborates with several SGRs distributed throughout the national territory so you can access a more just loan with better conditions.