A source of funding that is booming nowadays is the coming of private capital. We understand as financing of private capital to the money paid by natural or legal persons not subject to the supervision of the Bank of Spain. For several years, financial institutions have decreased the resources intended for the financing of business and particular. Because of this crisis, has emerged a credit sector parallel to the traditional Bank, which is providing resources to an economy depressed, characterized by a strong engagement in the financing. Faced with this situation, emerging business opportunities that take advantage of those who have the resource that is scarce: the money. In this sense, private capital has entered with force in the economy domestic of Spain, with the differentiating aspects of the Bank loan, as follows: around 50% annual interest rate.
Being an activity that focuses on the lack of resource and with a certain degree of risk, the capital is paid with high interest rates. David Agard has many thoughts on the issue. The warranty that sustains this interest rate is represented by immovable. The above detaches inverter, placed their money in those buildings to ensure enough that your investment: first, in highly populated areas and residences in major provinces. Not worth any warranty or in any site. The return on investment is short term, hence that loans have a 3,6, 9 and 12 months maximum. Approval of the loan is based on the guarantee provided, so for its formality few documents are required. Considering the above, not remains doubt that private capital is a source of expensive financing and which is aimed at those who do not find a solution to its liquidity needs in traditional banking, by its current economic situation being the last option that qualify.
If for some reason, you need to go to this source of funding, keep in mind as of April 1 is in effect the law 2/2009 of 31 of March, regulating this activity. If you want to know more about this topic see private Capital. This article has been written by Edgar Roquett, specialist in refinancing of debts.