The Private Capital: Source Of Funding In Times Of Crisis

It is striking how in times of crisis, caused by excessive permissiveness in granting credit by banks, individuals are the only ones willing to provide financing.

It seems a mistake to think that the policy followed by the banks to offer money to anyone is more erratic than not offer it to almost anyone. It is an exercise in irresponsibility both behaviors. You need to understand that people are suffering from a major lack of liquidity. Number of families and businesses in a difficult situation in which getting financing can be the difference between prosperity or sink.

It is at these times is when an alternative that comes to life so far remained in the background, the private capital. Private capital is the means of financing led by individuals whose main requirement is in the mortgage. It seems unbelievable but the only ones willing to take urgent payday loans or credits subject only to make a particular property are paid. Banks do not contemplate because they are not interested in accumulating more housing stock.

Even when the government has announced tax cuts for the purchase of new housing seems that there will be a relief in the harsh conditions to get a mortgage.

However, what we are talking about here is the funding for individuals in distress, in debt, those threatened by foreclosure. The anti-eviction movements are getting some people get more time to get saving your home, even outside the law. This seems a temporary solution, but unsafe, in what seems a bad spread.

Given a bit predictable change in access to finance "low-cost" private equity loans and credits to their urgent and refinancing has become the resource used by many Spanish. Its operation is very simple. The customer goes to check the media once the doors of the traditional sources of credit are closed. Once it is identified as possessing an unencumbered property proceeds to the loan contract is signed before a notary. At that time the customer has to a period of 15 years to repay the money. Interest rates are the same as that of credit cards.

This means of financing does not discriminate against people included in records of defaulters as ASNEF or RAI. It is for this reason that businesses and families can choose to get a new bank credit once his name out of these records of defaulters, through the intervention of private capital.

Given the large increase of the companies that are responsible for providing quick loans to the population, the government has decided to regulate this activity. It is therefore imperative to go to private companies recognized credits, years of experience and meet all regulations as required to be registered in the Bank of Spain SEPBLAC.