HOW TO GET FINANCING FROM BANKS?

The 80% of financing to companies is still bank financing in Spain, and it is cheap, but you have to know how to negotiate well...

In the US alone, there are many more financial alternatives that reduce reliance on the 40%.

• Bank requirements: they need to see your sales history, good metrics (no non-payments, no RAI)...
• Pitch to the bank: they don't like innovation, nor technical risk...!!!!. So if you go with the same Pitch as to the public administration, the NO is already there....
• He thinks that banks are looking for new customers to offer all its products (not just loans) to meet their objectives.

Each bank branch has different objectives and different needs to attract new clients, some are overloaded and others lack clients..., so, practice with the 20,000 branches in Spain, if you are lucky enough to find a director or salesperson who is not meeting their objectives EVERYTHING WILL BE EASIER.

• They are people who have to be convinced, up to a certain amount they can be defended by the company salesperson, or the branch manager, regional director... each person has a greater attribution the more responsibility he or she has within the bank.
• There are more than 20,000 bank branches in Spain with a director who has a business financing objective and you have to get them to work hard, not to ask, but to offer themselves as a client.

Practising financial PITCH with many entities until you learn...

• Open the negotiation with several branches at the same time, even of the same brand, loyalty in banks is not rewarded, the more branches the better (they do not differentiate...), banks prefer to divide the risk between several entities.
• A branch manager sells everything... even crockery, and he or she will probably not know what financial products his or her bank has that are adapted to entrepreneurs or start-ups.

So you will have to be the one who knows how to guide him on the type of product that will suit you best.

• Financial products that may be of interest to us from the bank: factoringThe following are some of the most common types of credit facilities: credit lines, credit lines to advance sales collections, discounting of bills of exchange or promissory notes, confirming to delay payments to suppliers, short term credit facilities.
• Risk profile of the bank: is very conservative, because they charge low interest rates compared to the high risks involved in start-ups, but... they also finance entrepreneurs!!!! 

• • Prefer mortgage guarantee, personal guarantee partners...

• Finding entities with a part of the guarantees covered by public support instruments, which is changing and difficult to keep up to date.

The bank's sales representative is not aware of all its products and we should invite him to consult internally on the availability of the following products:

• Microcredits. For entrepreneurs, or/and women, or/and startups. The guarantee is the project itself. CAIXA, Popular (YBS agreement, mentorDay), Banco Santander ....
• SGR, public entities that provide the guarantees that the bank wants to see, in Spain there are 23, one in each region and 3 sectoral ones. mentor FINANCES.
• EIB agreements, with some financial institutions, European Investment Bank, covers part of the risk with some of the institutions with which it signs agreements.
• Banks that understand startups: BSabadell, DayOne Caixa, Bankinter innovation...