Finding private lenders is easy, finding them is much more complicated. When we have financial problems and our “trusted” bank rejects us for whatever reasons, we usually look for alternatives. A private lender can be one of them. Private lenders are the group that, within an economic environment, are destined to solve personal or business financing needs. They are the angels or demons that one can meet at some point in their life.
Within the type of reader you are, you may have come to this article in the situation of being looking for money lenders or simply being interested in the business of investing as a lender, to facilitate reading I offer you a script to access the profile that the more you may be interested in:
- 1 Private money lenders
- 2 Requirements to lend private money
- 3 Private equity lenders
- 4 Contracts signed by Lenders
- 5 The general conditions of a loan
- 6 Loans without collateral
- 7 Loans with guarantees (Mortgages)
- 8 Loans with a car guarantee
- 9 Fast money lenders
- 10 Loans with Credit Checker
- 11 Private lenders in Spain
Private money lenders
Money lenders make their capital profitable regardless of more glamorous methods such as the stock market, mutual funds or real estate.
A private person who lends money happens to have a different image, when his only objective is to make his money profitable.
Anyone has the possibility to act as a private money lender to negotiate the conditions that they consider appropriate for their capital.
This means that you can lend your neighbor € 500 and agree to return the money within 30 days.
You have turned to the dark side of private money lenders .
If you take out quick cash loans at zero percent interest, you will become the coolest serious private lender in your area, the ngo of moneylenders. If in the future someone does not pay you, you will lose your money, you will get into legal claims, and finally you will ask yourself: why would I get into these problems?
Ah, I forgot: remember that when it comes to claiming your money you run the risk of receiving harmful comments as a speculator, usurer, profiteer of the evils of others, and other fallacious reasoning beyond pure reality.
There are several ways to lend money: fast loans without endorsement between individuals, cash loans, fast loans ... the way in which the money is lent is free to choose.
Are you still interested in lending your money? Well keep reading.
Requirements to lend private money
Most of us have unknowingly once acted as money lenders.
Who has not ever left money?
Lending a small amount of money is easy. The problem arises when you start to lend larger amounts.
Nowadays money lenders who consider themselves professionals usually have a commercial headquarters where they carry out their procedures and close their deals, or they participate in web platforms where together with other users they finance projects (crowdlending or crowdfunding).
Currently there is a State Consumer Registry where lenders and financial intermediaries register to carry out their activity. This State Registry provides greater transparency to the activity carried out by financial intermediaries, requiring civil liability obligations on their part.
Different types of private lenders
Before the new Mortgage Law A-2009-5391 that regulated the activity of financial intermediation appeared, money lenders did not have to render any account except the presentation of the benefits of their activity to the Treasury.
This has changed with the recent appearance of the new Law for Crowdfunding , which separates the activity of investors (the glamorous identifier of private money lenders), professional or non-professional.
The difference between investors is determined in the annual income tax that they declare and their annual investment intention.
The contracting of compulsory civil liability insurance amounting to 300,000 euros for the first year is established as a precondition.
This insurance seeks to provide coverage for bad practices and errors or negligence that these companies may commit in the development of their activities.
It is also necessary to present the inscription in the State Registry in the Ministry of Consumption .
Private equity lenders
People who have never looked for urgent money for reasons of Credit Checker or defaults on other loans, are unaware that Urgent Private Capital is the message that lenders send to attract clients. In other words, people who borrow money urgently advertise in this way.
This slogan indicates that a private lender lends his money on the condition that the applicant presents a GUARANTEE of a real property as collateral.
When you see an ad in which Private Equity loans are offered, you will already know that they are quick money loans in which the bank does not appear anywhere; You will be face to face with a lender or a company that is dedicated to this business model with a lighter filter thanks to the guarantees you can provide.
Contracts signed by Lenders
The basic contracts that are signed to make money loans usually have the same structure.
- First, the participants of the contract, their marital status, ID and place of residence are identified.
- The second part indicates the contracting and the general conditions agreed, the amount borrowed, interest, time and form of return.
- It is finally agreed upon by signature of the parties.
Whenever a loan is made between individuals of money, a basic contract like the one mentioned above is enough to carry out the management safely.
A bill of exchange can be incorporated to reinforce the operation. This exchange bill facilitates the claim of the debt in case of non-payment.
If we still want to go further in guaranteeing the loan, we can go to a notary and raise the act to public, provide a real estate guarantee by making a private equity loan or a simple recognition of debt. The mortgage guarantee contract signed before a notary is the one that offers greater security when claiming our debt in case of non-payment.
The execution and subsequent sale of the property presented as collateral will allow us to recover our investment. This case would be the most extreme when it comes to claiming our debt. Any action that avoids these greater evils guarantees us to avoid legal problems and problems.
The general conditions of a loan
The general conditions of a loan will be reflected in various parts of the contract, varying if they are quick loans without endorsement between individuals or, on the contrary, some endorsement or guarantee is presented for the operation.
In the case of the presentation of a guarantee or guarantee and that the type of contract is before a notary, or in its case of a draft, the maximum interest that should be required annually would be 12%.
This maximum interest can be variable with respect to the contracting conditions , that is, it can be higher, but as a general rule and in relation to the latest reform of the mortgage law it is a maximum figure to avoid problems.
The interest percentage that private lenders usually demand will generally be much higher than what a bank can offer you.
This difference from the point of view of an investor has its logic, he is assuming 100% of the risk of the operation, therefore a higher interest is not going to make him a usurer, you are simply evaluating the risk of the operation.
As an added condition we can find in many cases the incorporation of an opening commission. This can be variable and in many cases negotiable.
In the case of delay or non-payment in the fulfillment of the contract, the accrued interest can reach up to 20% interest, although as everyone knows, there are bank credit cards whose contracts reflect default interest of 22% or even more.
All these conditions will have to be reflected in a binding offer, the presentation of which must be made three days before the loan is signed and should accompany the contracting of the loan.
Loans without collateral
In situations in which the amount requested is within small amounts and its destination is for consumption, travel, shopping, etc., simply the presentation of our personal guarantees (payroll, income, personal income tax) has to serve us to get the loan that is needed.
In these cases, loans without collateral allow us to access small amounts and release us from the responsibility of having to provide an additional guarantee for settlement.
Loans with guarantees (Mortgages)
The money lenders to whom we offer guarantees or guarantees, allow access to amounts higher than those that a loan without collateral can offer you as a general rule.
These money-for-loan lenders who are dedicated to granting mortgage loans , also known in the market as private equity mortgages , see their investment backed by the type of collateral that is offered in the loan.
These loans with guarantees usually have a shorter duration than those offered by a bank: 5 or 10 years maximum.
On many occasions, private lenders allow the borrower requesting the loan to only pay the accrued interest, leaving the total loan as the final settlement. This is called American type loans .
Loans with a car guarantee
There are cases in which we do not have a real estate GUARANTEE to be able to present it to a money lender without guarantees. For this type of case there are companies and lenders that can offer you a loan with the guarantee of your car. This type of loan allows us to pawn our car if it meets a series of conditions.
To find out how these types of quick loans work, you can read our article on car endorsement loans .
Fast money lenders
In situations where I need money, speed and time is pressing against a chargeable interest. Quick loans appear on the scene as the solution to cover liquidity problems.
When I as an individual need quick money, resorting to a quick loan temporarily solves my lack of liquidity.
Quick loans are usually for small amounts: one hundred, five hundred, thousand euros ..., and are usually granted by private lenders with the provision of jewelery, cars, watches or any other object of value.
Loans with Credit Checker
When you find yourself in a delinquency database like the Financial Credit Institutions , access to credit is totally closed. There are some financial companies that skip this problem if the debt is from a telephone company that for some reason has our data registered.
The only solution for these cases is to turn to a company that manages these cases or to turn to a family member or friend to make us a loan to cancel that debt if it is small or assumable. To do this, we have this guide that we have written on loans with Credit Checker in which we show you which are the main companies and the steps you must follow to get it approved.
In the event that the debt is high, we can start looking for a property guarantee for a more complex case.
Platforms of Private Lenders in Spain
Money lenders are not on the street at your doorstep. They usually do a discreet business and do not like to be pointed out on the street.
Most of them usually act through intermediaries, financial advisers, tax advisers, lawyers, wealth managers, etc. These intermediaries look for clients, filter their possibilities and present them to the money lenders for them to decide.
Another way to find private lenders is through the so-called participatory financing platforms P2P lending, Crowdlending or Loans between Individuals .
In reality, the loan platforms between individual intermediaries that are dedicated to private capital would not be called participatory financing, since they will have their regulation in the Ministry of consumption.
These platforms are places where individuals register as investors to lend their money and borrowers apply for financing.
The deal is almost direct between the two parties, taking the platform that allows the negotiation of a percentage as intermediation.
In the Spanish market these appear from the year 2009, being Comunitae the pioneer in the P2P lending sector and later other loan platforms between individuals such as SEattle Meditation appeared .
These last years 2017/2018 have been the explosion of this type of business, with companies such as Zank, Lendico, Spotcap or Airborius that appear in the Spanish market offering all kinds of solutions for individuals and companies.
Private lenders in Spain
At seattlemeditation.org we are creating a database of private lenders that offer fast money in Spain. Therefore, we will shortly add to this page a list of:
- Private lenders in Madrid.
- Private lenders in Barcelona.
- Private lenders in Valencia.
- Private lenders in Seville.
- Private lenders in Zaragoza.
- Private lenders in Malaga.
- Private lenders in Murcia.
- Private lenders in Bilbao.
And more Spanish cities. Some of them operate throughout the territory, others only in certain districts, it depends on each one. In any case, you are sure to find the particular lender you need with our database.
If you want to be included in it, you can leave us a comment below with your contact information and the characteristics of the loans to individuals that you offer and we will include it in our list of lenders shortly.
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