How to get a microcredit

The access to finance is complicated, especially when the amounts requested exceed five figures. For this reason, more and more financial institutions , organizations and administrations are committed to promoting microcredits, loans that range between 9,000 and 25,000 euros and that are becoming an excellent tool for those who have a viable business idea but they do not have the resources and guarantees to get a traditional loan.

Its achievement is not complex, as long as our project has a planned viability and in a certain way demonstrable with figures and letters. You just have to follow a few simple steps that we list below. Ahead!

1. Preparation of the business plan. It should be realistic to look at two to five years of the expected progress of the business.
2. Presentation and approval. You must take your program to the organization that is supporting youwith your idea. If this gives the go-ahead, this will be a “moral guarantee” that you have to bring to the financial institution from which you are going to apply for the microcredit.
3. Preparation of all documentation. As a general rule, you must submit the following documents: favorable viability report issued by the collaborating administration, microcredit application form, identity document, curriculum vitae, work life report issued by the General Treasury of Social Security, statement of the income, personal and professional references, proforma invoices or budgets that justify the investment (for cases in which the money will be used to expand the business), information about the own funds to be contributed, proof of credit payments (if exist) that are already being paid, authorization to request the report from the Bank of Spain’s Risk Information Center.
4. Presentation of the application at the office of the financial institution. At this time you should take the opportunity to present the business idea. Face to face you can convince … And win!
5. Evaluation of the financial institution. They will assess both the business plan, the viability of the proposal and the possible acceptance of the concept, as well as the candidate, their profile, training, attitudes, etc.

Finally, the final note: approved … or failed . If approved, the actual work will now begin. Start up the company. If they don’t give it to you, don’t be discouraged. Ask what factors failed, the weaknesses of the proposal, and solve them to return to the attack. Who follows her gets her!