Today we want to talk about participatory loans, those of which society in general have barely heard. It is a Good financial product between a business loan and a conventional loan and venture capital investments.
Objectives proposed in the business plan are achieved
It stands out above all for the need not to have a guarantor but a good business plan that the banking entity sees as profitable and viable since the money is being slow as the objectives proposed in the business plan are achieved. These can be met in monetary terms of billing or sales, by customers, products, etc.
We are therefore facing a long-term loan with interests linked to the direct results of the company.
Regarding its conditions, they consist of a fixed interest and another variable that are established depending on economic indicators. An advantage in this regard is that these interests are also deductible on the Corporation Tax which must be paid annually.
The repayment term or date is established
The repayment term or date is established in the signing of the contract so that the loan can be converted into a percentage of the company and the lender does not participate in any of the efforts of the company although it would have a representative on the Board of Directors. Administration.
At present, this financial product has become one of the star products for entrepreneurs and companies that need liquidity for their business and do not want to apply for a conventional loan at their bank.
To be able to access them
However, to be able to access them, you must be a small or medium-sized company legally constituted, have audited accounts, demonstrate a good economic situation and provide all the necessary documentation that explains the business project and its viability.
Therefore, participatory loans have become a great source of financing, although for self-employed cases, for example or when smaller amounts of money are needed, we can opt for fast loans whose conditions you can consult at Good Finance.