Europe opts for loans for more alternative companies

Europe opts for loans for more alternative companies

The latest study on alternative financing in Europe, conducted by the University of Cambridge, concludes that the great reception that the new models of business loans are having in front of the big banks has made alternative financing grow in Europe by 144% on last 2014, reaching 2,957 million euros in credit.

New business loans make their way

Alternative financing can be interpreted in different ways, but it is more common to understand it as direct access to credit through online platforms , which is why technological development and access to digital tools make it a trend in regions such as Continental Europe, England and the United States. Without going any further, according to the report of the University of Cambridge, during the last three years loans have been granted to about 10,000 SMEs and startups in Europe alone.

In one of the sections of the study highlights the importance of alternative financing when promoting innovation and create new jobs . But, for the new models of business loans to continue to grow, the regulation of the economic sector is essential. This will facilitate the growth of the market and guarantee greater transparency and protection for consumers and investors.

Alternative financing models, such as collective financing and loans between
Individuals present a challenge to traditional financing theories and traditional financing providers. “

Professor Raghu Rau
Director of Finance and Accounting of the Judge School of Business
(University of Cambridge)

Spotcap bets on business loans

Working as a freelancer or owning an SME is not an easy task, because in addition to having to overcome all the difficulties that we encounter along the way, trying to obtain the necessary financing so that the company comes out is almost impossible mission. Luckily, the changes that the markets are undergoing and the speed with which they do it, are the perfect breeding ground for the creation of economic alternatives that manage to leave behind the traditional banking system, which until now has only hindered all the people that have wanted to take forward a business idea.

The desire to have a convenient and simple way of financing has given birth to entities such as Spotcap , which consider that SMEs are the fundamental basis for a country’s economy to grow . Thanks to business loans, small businesses can count on sufficient liquidity to cover their basic needs and achieve their objectives more easily.

Mini fast credits, from Bangladesh to Europe

Mini fast credits, from Bangladesh to Europe

Although the origin of the mini credits has a social feeling, since its objective is focused on improving the purchasing power and the living conditions of the most disadvantaged sectors of the Bangladeshi population, the truth is that this unique financing formula has come stomping to Europe and the sector of mini fast loans has grown exponentially in recent years, becoming a quick solution to the lack of liquidity in times of crisis.

5 mini loans for € 1 a day or less

The mini fast loans have landed in Europe to offer us economic help and to solve, without having to go through the bank, any unexpected economic event that surprises us in moments of low solvency. In the following table we will see which entities charge less interest so that you face specific problems as quickly and economically as possible:

Lender Maximum amount Cost € 100 to 30 days  
Them good! € 600 (€ 300 new customers) € 30
€ 14.85 (code HMC0815)
 
Vipus € 800 (€ 300 new customers) FREE new customers
€ 24
 
Gyzoo € 800 (€ 300 new customers) € 30  
Alright Money € 600 (€ 300 new customers) € 30  
PedroDinero € 500 (€ 250 new customers) € 30
€ 25 free gift and 7 days with the Sponsor Program
 

Quick mini credits adapt to developed countries

The lenders have applied the new technologies to the sector of the fast mini credits, demonstrating that the derivatives of the Big Data allow to value the credit capacity of their clients in a more effective way , adapting a financial proposal that was thought under a solidarity philosophy to offer economic support to another level in developed countries.

Through web platforms, interested parties can request fast mini credits and get the money they need in a few minutes . They are also loans of small amounts, usually not exceeding € 600, although we can find lenders who grant up to € 800, whose repayment term is up to 30 days, hence the concept ‘mini’.

The interest rate on the microcredits of Muhammad Yunus , the promoter of the initiative, is very low. Its intention is to facilitate reimbursement to borrowers, a trend also followed by private entities that grant quick mini-credits. However, it is necessary to clarify that, although the lenders make a calculation of the APR of the loan, that figure does not correspond to the real price of the service, but refers to the cost it would have if the money were repaid in one year. Remember that the price of mini loans depends on the daily interest that each lender applies and that it is adequate so that it can be repaid without problems within the agreed term, becoming an affordable formula for the majority.

Spanish personal loans bring their interest closer to the European average APR

Spanish personal loans bring their interest closer to the European average APR

According to the latest report of the Bank of Spain, the average APR of 2016 for personal loans in the Euro Zone was 6.27% , a percentage 2.2 points below the average APR of Spanish consumer loans. during the same year, which stood at 8.47% . However, despite the difference, there is a downward trend in the interest on personal loans in our country since the average APR for this year has been the lowest since 2005, when it was placed at 8 , 22%.

The importance of getting personal loans with low interest

It seems that the stimulus measures promoted by the European Central Bank almost a year ago are having an effect. The average annual APR of consumer loans in Spain has reached its lowest level for 12 years and with a difference of more than half a percentage point (0.56) with respect to the APR of 2015 when its average was 9.03% . This reduction in interest is good news for those of us who are looking for personal loans, since it represents a saving of several hundred euros in the financing we hire. We can currently find personal loans in our country that offer us financing below the European average:

Product Amount Interest Advantage  
Gofindis Project Credit Up to € 15,000 From 4.95% TIN (5.06% APR)
  • Without changing bank
  • It has no commissions
  • Does not require contracting related products
 
Personal loan from Cemetem Up to € 50,000 From 5.95% TIN (6.12% APR)
  • Does not require changing bank
  • No commissions
  • It has no connections
 
Largebank Plan Loan Up to € 15,000 From 6.74% TIN (6.95% APR)
  • No need to change banks
  • No commissions of any kind
  • Does not have binding bindings
 

This small war of personal loans in which the different financial institutions of credit are currently predicted augurs a greater offer of promotions with more advantageous conditions for the users and a reduction of the interests during this year to reach the objectives of the European Central Bank.

How much would you save with consumer loans with European interests?

The difference between the interests of the average personal loans of Spain and Europe represents a significant saving in the financing that we hire. To see it more clearly, let’s suppose that we have two loans of € 10,000 to be returned to 5 years (60 months), without additional fees or bonds and with an interest of 8.47% and another with an interest rate of 6.27%. This disparity in the generated interest supposes a saving of more than 600 € in a loan with the same conditions.

Quantity Term Interests Generated interests Total to pay
€ 10,000 60 months 6.27% € 1,175 € 11,675
€ 10,000 60 months 8.47% € 2,301 € 12,301

Although the table is calculated based on interest, it is important to take into account the APR of personal loans in order to make an objective comparison when we are looking for financing for our projects since interest (TIN) does not include other associated expenses such as commissions or linkages, while the APR does include all the factors that affect the cost of these personal loans.

Spain is the sixth European country where financing is more expensive

Spain is the sixth European country where financing is more expensive

Spain is among those that offer more expensive financing if we compare them with the average interests of July of the other European countries. According to the statistics of the Euro Zone published by the European Central Bank (ECB), Spain is the sixth that offers more expensive loans with an average of 8.40%, while the European average in the same types of consumer loans is at 5.06%.

How are personal loans in Europe?

According to the data of the ECB, France is the country where it is cheaper to finance (3.58%) while Estonia is the most expensive in the euro zone, where the average interest of the financing offered is at 16.95. %. Spain is the sixth most expensive by position above Portugal (7.41%), Italy (6.83%) and Slovenia (5.80%) . Also, although the difference in figures between the French country and ours is much smaller than if we compare it with the figures from Estonia. Luckily, although the average cost of financing in our country is more expensive than in other countries, we have some offers below that average:

Lender Max. Cost characteristics  
ING Blue Loan € 60,000 5.95% TIN – 6.11% APR
  • Without changing bank
  • No linked products
  • It has no commissions
  • Up to 7 years term
  • Immediate response
 
Gofindis Project Credit € 15,000 From 4.95% TIN – 5.06% APR
  • Does not require changing bank
  • Without links
  • € 0 in commissions
  • Term of up to 6 years
  • Money in 24 hours once the application is approved
 
Cetelem Personal Loan € 50,000 From 6.95% TIN – 7, 18% APR
  • No need to change banks
  • No linked products
  • No commissions
  • Term of up to 8 years
  • Money in account in 48 hours
 

Among the cheapest countries to obtain financing, we find France in the first place, as we have already mentioned, Finland (3.65%), Belgium (4.06%), Austria (4.12%) and Germany (4.57%). %)

The difference in the cost of financing according to the country

As we have already seen, France is the cheapest country to get personal loans, Estonia the most expensive and Spain is halfway there. Interest is one of the most important factors when determining how much we will pay in total. To see it more clearly, in the following example we can see how much it would cost us to contract financing of 8,000 euros to pay for three years depending on the country where we requested it:

country Quantity Term Cost Monthly fee Total interests Total
Estonia € 8,000 36 months 16.95% € 285 € 2,262 € 10,262
Spain € 8,000 36 months 8.40% € 252 € 1,078 € 9,078
France € 8,000 36 months 3.58% € 234 € 449 € 8.449

As we can see, the difference in both the monthly fee that we would pay and the interest generated is abysmal. Although in Spain we do not have financing or as cheap as that offered by France, but not as expensive as that of Estonia, we can find financing below average and also allow us to obtain it without being clients with a certain age or even without changing of bank.

Europe will allocate 500 million in credits for the financing of companies with social objectives

Europe will allocate 500 million in credits for the financing of companies with social objectives

Image result for socialThe most innovative initiative in the sector of financing for companies is the European Commission and the European Investment Fund, after agreeing an agreement that will favor micro-enterprises and companies with social purposes . According to data from Europa Press, with the new contract it is expected to allocate more than 500 million in credits in the next five years.

For the first time, a pact focused on social enterprises

The news about loans for SMEs is a trend in the media sector, but for the first time we find an agreement aimed at stimulating the financing of companies that develop social activities.

The program will consist of the granting of loans of up to € 25,000 , which will be aimed at individuals who want to move forward with a company, or for entrepreneurs who already have their company, but need financial support to continue growing.

Other alternatives focused on financing for companies

Although it seems that things start to change, and for the better, we should not settle for the minimum and that is why it is essential to know everything that is within our reach and that will help us achieve the liquidity that our business needs. These are loans for companies granted by private companies, a new form of business financing made to measure and that will allow us to get a line of credit of up to 100,000 euros in less than 24 hours:

Lender Maximum amount Interest Advantage I’m interested
Ivoca € 50,000 3.50% monthly
  • Only interest of the amount used is paid
  • There are no study or opening commissions
  • We will know if it has been approved in 24 hours
  • Without domiciling the payroll or receipts
  • Without hiring related products
  • Early repayment without commission
Apply for
Spotcare € 100,000 From 0.5% to 4% per month
  • You only pay for what you use
  • Instant response, concession in 24 hours
  • No hidden interests
  • Free early amortization
  • Tailor-made financing thanks to the scoring service
  • After the first 3 months it can be renewed 6 more months
Apply for

What is the purpose of the new agreement?

The initiative is driven by the European Program for Employment and Social Innovation and its objective is to facilitate access to credit to people who have encountered obstacles when it comes to obtaining financing for their company, either to encourage the activity they already develop or to start the project from scratch.

According to the statements of Mariann Thyssen, the employment commissioner, it is a project aimed at promoting and promoting new jobs and improving social conditions , because the new loans will help consolidate existing companies and create new ones . On the other hand, the executive vice-director of the European Investment Fund, Marjut Santoni, affirms that the transaction will enable greater support for European micro-enterprises and stresses that the last agreement allowed financing more than 30,000 micro-enterprises and creating 47,000 jobs.

“The money that comes from Europe to Andalusia is lost in the hands of Susana Díaz” because it “leaves it in the drawer”

“The money that comes from Europe to Andalusia is lost in the hands of Susana Díaz”, because it “leaves it in the drawer”

The secretary general of the PP-A, Loles Lopez, has assured this Friday that “the money that comes from Europe for Andalusia is lost in the hands of the president of the Board, Susana Díaz”, because, she has criticized, “every year leaves millions in the drawer without executing. “

At the opening of a working conference with Spanish MEPs of the European People’s Group and regional parliamentarians of Andalusia in Malaga, along with MEP Teresa Jiménez Becerril and the mayor of the city, Francisco de la Torre, López pointed out that European funds they are “fundamental for this land, but more important is knowing how to manage them”.

“Every day that Susana Díaz has left the millions of euros in the drawer, has been a day that has increased the list of unemployment of the Andalusians,” he said, stressing that who has to manage that money “is not able to execute 100 percent of the European funds we receive. “

Thus, has indicated that Andalusia “have come many funds from Europe”, stating that since Spain enters the European Union until 2016 the region has received 45,750 million euros, “almost a budget and a half of the Junta de Andalucía”; but he has lamented that “we have an umbrella for that rain of funds, today directed by the president of the Andalusian Government”.

At this point, Lopez has asked himself “what has been done with that money”, noting that from 2013 to 2016 Andalusia has received 9.216 million European funds “, amount of which Diaz, has said,” has left in the drawer 4.085 millions without spending, without investing, without executing. “On 2017, he has alluded to that the last report says that in November” only 35 percent of the funds had been executed, 1,300 million euros were in the drawer “.

For the general secretary of PP-A, the fact that Andalusia “has incredible potential we all know”, but also recalled that it is among the autonomous communities “with the highest rate of unemployment” and that employment is created “by inertia of Spain and by the measures of the central Government “.

Lopez has criticized that the community lives “a brake on its development because of PSOE”, alluding to “42 percent of the Andalusian population suffer poverty, 19 points above the European average and 13 of the national average” that the school failure rate is “twice the EU average”. “What is the PSOE doing with the millions of euros it has received from Europe”, has been questioned.

“There are two alternatives in Andalusia, which is capable of achieving the advance of this land that is called Juanma Moreno – regional president of the PP – and who has been putting the development and life guarantees of the Andalusians to a standstill for almost 40 years. Her name is Susana Díaz and PSOE, “he said.

Lopez has insisted that the PSOE “widens the gap in Andalusia”, noting that “what hurts you when you are Andalusian is living in the best land in Spain and whoever runs this land is taking away opportunities from your neighbors, to your friends and your people. “

He referred to the Economic Cohesion Report presented in the European Union, which he described as “chilling”, because, he said, “Andalusia not only does not converge but it moves away and we are the autonomous community that has received the most funds”. Thus, he pointed out that while “some of us worried, others attacked the EU and the report,” criticizing that “when one is not able to recognize the problem, it is hardly able to put solutions.”

Although he said that the data “are cold”, he pointed out that “they mark truths as fists and behind the figures there are many families, many faces and many people wanting to have a future in our land”, considering that “there is an opportunity, Her name is Juanma Moreno, and we will not miss her for the Andalusians. “

Thus, he has opted to make this meeting “a common block in defense of Andalusia”, insisting that the PSOE “has had many years and a lot of money to bring this land afloat and has wasted it for a simple matter, because it does not runs what runs to the Andalusians through the veins. “

In addition, he pointed out that with these days “we want to learn about everything that is happening in Europe that affects our territory and that you are imbued with the reality that is Andalusia and above all that you discover the potential it has to exploit and explore”.

“WASTE THE OPPORTUNITY”

Meanwhile, MEP Teresa Jiménez Becerril stressed that Andalusia has received from the EU “huge amounts of money in all types of funds for its development and has squandered the opportunity to take off as deserved the most populated region of Europe.”

He has asked why the company “has such a hard time settling in Andalusia, it will be due to a lack of confidence in an outdated socialist government that has been going on for almost four decades”, why “the European Commission warns us that the convergence process is stagnating to the huge invested cohesion funds “and why” we have not reached the level of convergence in terms of education, the business environment, social protection systems and the labor market “.

Finally, the mayor of Malaga, Francisco de la Torre, has assured that the Board “does not work properly in terms of the proper use of resources” and has urged to reflect on the decentralization of European funds, considering “good” that from the local level “we could manage a part of those funds without having to go through the interruption of the autonomic channel”.

Nobody earns more money than Barça and Madrid in Europe

Nobody earns more money than Barça and Madrid in Europe

LaLiga clubs increased their revenues by an average of 27 million euros each in the last six years, according to the UEFA’s license comparison report, which places Real Madrid and Barcelona at the top of the list by total revenues of the 30 most important European clubs.

The document states that the Spanish championship has the highest number of teams with benefits from all European leagues and reflects a significant decrease in losses in the continental group of clubs since the introduction of financial fair play.

The report indicates a significant decrease in the losses of clubs

Although in 2015 revenues only grew by 3 percent, LaLiga took third place in the classification by income (2,000 million euros), ahead of the Italian Serie A (1,900 million euros) and behind the German (2,400 million euros) of euros) and the English one (4,400 million euros).

The average of 27 million euros per club is more than 20 for each team in Italy, but less than 48 million euros per club in the Bundesliga and 99 million euros in the Premier League .

The UEFA report estimates that with the centralization of television rights “if all other factors remain unchanged, the revenues of LaLiga clubs will exceed those of the Bundesliga in 2017 and will remain slightly below the Bundesliga’s revenue in 2016 and 2018. It is expected that the gap between LaLiga’s income and that of the Italian and French clubs will increase considerably. “

According to Spanish football data, Real Madrid and Barcelona lead the list of the 30 most important European clubs from the point of view of total revenue. In this group there is only another Spanish club, Atlético de Madrid, in the 21st position for those obtained from the UEFA competitions.

LaLiga ranks second in terms of the value of its players behind the Premier

LaLiga is the third in Europe in box office receipts, with 419 million euros (although 60% comes from Barça and Real Madrid), and the results of their clubs in European competitions meant that they have again the highest for this concept in 2015 (210 million euros).

“This amount will increase in the coming years with the 35% increase in the distribution of UEFA competitions from 2016, and Spanish clubs should benefit from the change in the distribution criteria (from the size of the television market to sports performance of the club) from 2018/19 “, the text states.

The wages of La Liga, a total of 1,238 million euros, were the highest quarters in 2015, behind those of England and “the relationship between wages and income increased from 56% to 60%, but still favorably maintaining the comparison with England (61%), France (68%) and Italy (69%) “.

“Although the salary ratio of La Liga has risen slightly in recent years, the relatively low spending on transfers and the large gains from the transfers have caused a return to profitability in the final balance,” UEFA said.

In 2015, nine Spanish clubs declared operating profits and 11 presented losses. After the inclusion of transfers, financing and taxes, 14 LaLiga clubs presented benefits in 2015, which means “a greater number of clubs with benefits from all European leagues and a significant improvement in profitability compared to the only 7 clubs with benefits that existed in 2011. “

In the last three years the clubs of La Liga have generated an aggregate benefit of 430 million euros after taxes, against the losses of 235 million registered between 2010 and 2012.

In 2016 the Spanish teams had 42% of foreign players in their squads, less than the Germans (49%), much less those of the Italian Serie A (55%) and those of the Premier (69%).

“It is estimated that LaLiga occupies the 2nd place in terms of the value of its players, behind the Premier League but ahead of the Serie A and the Bundesliga, while the second Spanish division is in the 21st position in the standings “, adds the report, which also alludes to the fact that there are 9 home teams in its stadium, -the highest proportion in Europe- since it had the third highest audience attendance in matches in 2015/16 (slightly less than 11 million of spectators).

Control the huge debt of Europe

Control the huge debt of Europe

The net cost of aid for the crisis offered by the G-20 in 2009 to the financial sector amounted to 1.7% of GDP (905,000 million dollars), according to the International Monetary Fund, while the discretionary fiscal stimulus reached 2% of GDP in 2009 and 2010. All eurozone countries, except Luxembourg and Finland, had fiscal deficits of over 3% of GDP in 2009, while those of Greece, Spain and Ireland exceeded 10%. In just one year, the overall debt of the eurozone governments increased by almost 10 percentage points (78.7% of GDP in 2009 compared to 69.3% in 2008).

Regarding Germany, the 2010 federal budget shows a high unprecedented deficit that exceeds 50,000 million euros. The debt of the private sector will exceed 1.7 billion euros, close to 80% of GDP. Interest payments, which consume more than 10% of Germany’s federal budget, will grow at the same time as the debt burden – and even faster if interest rates rise.

However, the financial crisis and the subsequent recession are what for the moment explain these high levels of indebtedness. The truth is that many European countries and the G-20 have been living beyond their means-including Germany, despite its reputation as a paragon of fiscal rectitude.

Even in prosperous times, governments have been spending much more than they have received for a long time. And what can be worse, some spend more than they could feasibly reimburse considering the potential for long-term growth decline in their economies due to the aging of their populations. That waste has led to levels of debt that will be unsustainable if we do not take action on it.

For this reason, Germany decided in 2009 to enact strict fiscal rules in its Constitution. The Schuldenbremse or debt brake requires the federal government that the structural deficit does not exceed 0.35% of GDP for 2016, while in the German Länder any kind of structural deficit will be banned by 2020. Undoubtedly, the Current federal government will comply with these rules, which implies reducing the structural deficit to approximately 10,000 million euros for 2016 – a decrease of around 7,000 million euros annually.

This year, the social protection chapter in Germany accounts for more than half of its federal spending. So the only possible option is to cut social spending, at least moderately. However, this type of fiscal consolidation can only be achieved if the majority perceives it as socially equitable. Recipients of public and private assistance alike, as well as public officials, have to share the sacrifice. Therefore, the German companies will have to contribute to the fiscal consolidation by means of reductions in subsidies and additional taxes to the main companies of energy, air and financial institutions. Likewise, public officials must renounce promised wage increases, while the Government is trying to save up to three billion euros in spending on the federal armed forces by means of structural reforms.

The fiscal rules stipulated in Germany serve as an example for other countries of the eurozone. However, all governments in the eurozone must demonstrate their own commitment to fiscal consolidation in order to restore the confidence of the markets – and their citizens. Recent studies show that when a government’s debt burden has reached a threshold that is perceived as unsustainable, a larger debt will only impede economic growth instead of stimulating it.

The debt crisis in Greece was a clear warning that those responsible for the development of European policies should not allow public debt to accumulate indefinitely. The EU did well to take resolute measures to ensure the stability of the euro through short-term aid to Greece and the establishment of the European Financial Stabilization Mechanism (EFSF). However, although the EFSF is a necessary measure to restore confidence, the Greek crisis has revealed the structural defects of the fiscal policy framework of the European Monetary Union (EMU), which can not and should not be corrected with the money of other countries.

In effect, I consider that the EFSF is an interim measure while we correct the shortcomings of the stability and growth pact, whose fiscal rules lack force. Therefore, we need a more effective crisis prevention and resolution framework for the eurozone, which strengthens the preventive and corrective provisions of the pact. Sanctions for eurozone countries that seriously violate EMU rules must take effect much more quickly and with less political discretion and must be more severe.

Germany and France have proposed more severe credit and expenditure measures, backed by harsh semi-automatic sanctions against governments that do not comply. The EU funds should be frozen and the voting rights of countries that repeatedly ignore the recommendations to reduce their excessive deficits and those that manipulate official statistics should be suspended.

The monetary union was not designed to be a panacea for the members of the eurozone nor to serve as a millionaire model for financial speculators. Nor is its purpose to be a system of redistribution from rich to poorer countries through cheaper loans to governments in the form of common eurobonds or unrestricted fiscal transfers. The monetary union will not succeed if some countries repeatedly have deficits and weaken their competitiveness at the expense of the stability of the euro.

The UME was designed to incentivize structural reforms. It was assumed that the wasteful members would be forced by the stability and growth pact, as well as by their partners, to live according to their possibilities and thus strengthen their competitiveness. In contrast, Germany’s previous social democratic government weakened the pact when it politically agreed with it, while the less competitive eurozone countries allowed wages to rise and the public sector to grow, and then looked the other way while easy credit powered the economy. debt and asset bubbles.

We can not boost sustained growth or avoid the sovereign debt crisis in Europe (or anywhere else) by accumulating more debt. European countries need to reduce their deficits in a way compatible with growth, but they have to reduce them. It can be done: Germany is reducing its debt burden to sustainable levels while strengthening its long-term growth prospects. Their experience in reducing the deficit by fostering growth, together with their suggestions for strengthening the fiscal framework of Europe, could serve as a model for European economic governance.