ICO, la financiación del futuro

One ​​of the main problems that an entrepreneur faces when opening a business is the lack of financing. The initial expenses to start a company can be diverse and large: expenses for establishing the company (Notary, Commercial Registry, Management), self-employment fee, office rental and purchase of material, among others.

Access to financing is complicated for entrepreneurs who are starting. They usually use options such as the amounts they have saved, capitalization of unemployment, loans from family members or requesting bank financing. In addition to the above, one of the options that can be considered is financing through the Official Credit Institute with the so-called ICO loans.

What is ICO financing?

ICO financing for companies and entrepreneurs is a form of financing aimed at self-employed people and Spanish or foreign companies that want to invest in Spain and need liquidity. Individuals and communities of owners can also request these loans for home rehabilitation.

Another of the significant areas to which ICO (Official Credit Institute) financing is allocated is the internationalization of companies.

There are currently several ICO lines that are the following:

• Companies and entrepreneurs. It is what we have defined.
• SGR SAECA Guarantee. It is aimed at self-employed workers and companies that have a guarantee from a Reciprocal Guarantee Company or the State Joint Stock Company for Agrarian Surety.
• Commercial credit. It is aimed at self-employed workers and companies needing liquidity and early invoice payment.
• Energy efficiency. It is aimed at industrial and commercial companies that carry out installations to reduce carbon emissions. It is also aimed at individuals in the hospitality industry who carry out actions to achieve energy efficiency.
• Internationalization. It is aimed at companies that wish to invest outside Spain and need liquidity.
• Exporters. It is aimed at companies and self-employed workers who need liquidity and to receive advance payment of invoices that come from exports.

How to finance yourself with ICO?

In the case of the ICO line for companies and entrepreneurs, the steps to follow are the following:

• This type of financing can be requested by the self-employed, public and private entities (companies, foundations, NGOs, etc.) that make investments in Spain and/or need liquidity.
• Financing, therefore, can be used for liquidity or productive investments (vehicles, business acquisition, VAT).
• If you meet the above requirements, contact a credit institution listed at this link and request financing.
• The credit institution will study the operation and decide whether to give you the financing.
• The maximum financing per client is 12.5 million euros per year.
• The modality of the operation will be a loan or leasing in the case of investment or a loan or line of credit in the case of liquidity.
• The amortization period and the waiting period will depend on the destination of the financing, and the interest rate may be fixed or variable.
• The credit institution that processes the financing may request the guarantee that it deems appropriate.

As you have seen, there are different types of financing methods within the ICO, so it will depend on the situation of your company and the conditions you meet. You will be able to request one or the other.