In the world's most advanced economies, the private equity market is fully established and has established itself as an ideal solution as an alternative to traditional banking. Proof of this is that in the United States, which enjoys one of the most powerful world economies, bank financing already represents less than 25%. In Spain, this predilection for private financing has also been noted. In fact, according to SpainCap —the Spanish capital, growth and investment association— private investment reached 7,494 million euros in 2021. In 2022 it has continued to grow, since only in the first 6 months it stood at 5,165 million euros investment, 170% more than in the same months of the previous year.
Within the framework of private financing, there is a product that is in full swing in the reference economic systems and that has recently gained special relevance in Spain. These are the so-called bridge mortgages, short-term loans —to be repaid between one and four years— that allow access to large sums of capital to quickly meet specific liquidity needs.
In fact, bridge mortgages are a form of mortgage loan that works like a glove to pay for purchases or investments without loss of capital or to cover any immediate liquidity needs.
Due to its idiosyncrasy, this product works as an ideal complement to traditional bank financing, since it should be noted that this solution is especially interesting for companies or individuals who have difficulties accessing bank financing. private equity
You can avoid the most notable difficulties, such as the fact of appearing in delinquency records, in bankruptcy proceedings or in seizure processes or auctions. In addition, it provides extra speed, since the procedures are much more agile than in bank financing. It must be taken into account that the fact that these credits are granted by private financing implies higher interest rates than if they were administered by traditional banks and requires effective guarantees. This happens because the private financial assumes a greater risk than traditional banking.
This product is intended for both SMEs and large companies as well as individuals. However, when the clients to whom the loan with mortgage guarantee is granted are natural persons, private capital is subject to the legislation on real estate credit. For this reason, the financial company must be registered in the official registry and must be supervised by the Bank of Spain. This requirement is a requirement that ensures professionalism, good governance and suitability of the bank.
TQ Eurocredit, as a private financing company with more than sixteen years of experience, is not only supervised and registered in the official registry of the Bank of Spain, but has financed more than 375 million euros in private capital to companies of all sizes. . With offices around the entire territory —Barcelona, Girona, Madrid and Palma—, and more than 40 professional experts in this market, it has managed to be one of the leading companies in the sector.
Raimon Serra, its commercial director, points out that Spain is no exception in the upward trend of private capital compared to traditional banking. In addition, specifically, he points out that in recent years they have observed a growing interest in bridge mortgages on the part of companies and individuals: "In some cases because they had difficulties obtaining credit from the bank, or because they simply wanted the speed that we offer , or because they preferred to leverage an investment without draining its liquidity.
And what is remarkable is that many clients, when they learn of this solution, repeat it”. Serra emphasizes that it is essential to know the essential requirements of customers and thus be able to offer the solution that provides them with the most value. In addition, for the coming months, he envisions a moment of great potential and growth.
