All the programs that the Official Credit Institute makes available to small businesses for financing.
Small and medium-sized companies today have more possibilities for financing than a few years ago, when the economic crisis caused credit to be restricted to levels never seen before.
Entities are more willing to grant loans with longer payment terms and lower interest rate and guarantee requirements. As a public entity attached to the Ministry of Economy, the ICO (Official Credit Institute) wants to contribute to this trend by making financing lines available to companies and the self-employed under advantageous conditions.
The 2017 catalog of lines is divided into two fundamental blocks: products to finance projects in Spain and products intended to support the internationalization process and the export activity of companies.
Within the first block there are three financing programs: ICO Companies and Entrepreneurs, ICO Guarantee SGR/SAECA and ICO Commercial Credit.
ICO Line for Companies and Entrepreneurs
These are loans that self-employed workers and companies can request to cover their liquidity needs or carry out investment projects (purchase of machinery, vehicles, etc.). The maximum amount per client is up to 12.5 million euros, in one or more operations.
One of the main advantages of this line is its long amortization terms, which cover periods of up to 20 years with a two-year grace period for investment and four years with a grace period for liquidity. The client can formalize his operation at a fixed or variable interest rate. The maximum APR is fortnightly and can be consulted at www.ico.es.
ICO line SGR/SAECA guarantee
In this programme, ICO has the collaboration of mutual guarantee societies (SGR) and SAECA (Sociedad Anónima Estatal de Caución Agraria). The SGRs are non-profit financial entities whose main mission is to provide small and medium-sized companies and the self-employed with access to credit and improve, in general terms, their financing conditions. To achieve this objective, they guarantee their operations before credit institutions.
The self-employed and companies that need financing for a viable project, but do not have sufficient guarantees to obtain a loan from a financial institution can request the guarantees granted by the SGR. These guarantees support your applications and increase your chances of accessing the loan.
For projects in Spain, the self-employed and companies can request financing to cover their liquidity needs or develop their investment plans (purchase of machinery, purchase of vehicles, etc.). The maximum amount per client is 2 million euros.
ICO Commercial Credit Line
The objective of this line of financing is to provide liquidity to companies and the self-employed by advancing the amount of the invoices from their commercial activity within the national territory.
This line is aimed at self-employed workers and companies with registered office in Spain that issue invoices derived from the firm sale of goods and services made to a debtor located within the national territory. The possibility of accessing pre-financing to cover the costs of production and preparation of the good or service object of sale in national territory is also contemplated.
The maximum amount per client and year granted by the ICO through this line of financing is up to 100% of the amount of the invoice, provided that the maximum amount of 12.5 million euros of outstanding balance per client and year is not exceeded. in one or more provisions.
The second block is made up of products from the international catalog to provide comprehensive support for the internationalization and export of Spanish companies and thus facilitate their going abroad: ICO International Line 2017 and ICO Exportadores Line 2017.
The ICO also makes lines of credit available to companies for internationalization processes of Spanish companies, both in their export aspect and investment abroad.
ICO International Line 2017
This Line makes financial resources available to companies for investments outside the national territory and liquidity and, on the other hand, favors the exports of companies with medium and long-term financing, both through buyer credit and supplier credit, as well as complementary financing for companies. Due to its dual purpose, this line is divided into two sections:
Section I. Investment and liquidity
It finances investment and liquidity for the self-employed, companies and public and private Spanish entities, domiciled in Spain or with domicile abroad that have at least 30% of Spanish company capital.
What can be financed?
• Investments outside the national territory: productive fixed assets, new or second-hand (VAT included), tourism vehicles (costing less than 30,000 euros), company acquisitions, creation of companies abroad and liquidity with a limit of 50% of the financing obtained for the investment.
• Liquidity.
The maximum amount per client is up to 12.5 million euros or its equivalent in US dollars, in one or several operations. The modality of the operation can be a loan/leasing for investment and a loan for liquidity.
The line offers long amortization terms that are adapted to the needs of each operation. If investment is financed, these terms can be 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 15 and 20 years with a grace period of up to two. If it is used to finance 100% liquidity, the terms can be 1, 2, 3 and 4 years with the possibility of a grace period.
Section II. Medium and Long Term Exporters
It grants supplier and buyer credit and complementary financing to companies.
What can be financed?
• Supplier credit: financing to Spanish companies for the sale of goods or services, to companies with registered offices outside of Spain.
• Buyer credit: financing to companies with registered office outside of Spain, for the acquisition of goods or services exported by companies with registered office in Spain.
• Complementary financing: financing to the foreign company that acquires the Spanish goods or services, which has not been fully covered by a Buyer Credit.
The maximum amount per client is up to 25 million euros or its equivalent in US dollars, in one or several operations under the loan modality.
The repayment terms are quite long and are adapted to the needs of each operation. Operations under Tranche II Medium and Long Term Exporters can choose between 2, 3, 4, 5, 6, 7, 8, 9, 10 and 12 years with up to three grace periods.
ICO Exporters Line 2017
This program provides liquidity to companies by advancing invoices from their export activity in the short term and covering their liquidity needs to cover the production costs of the goods to be exported.
The maximum amount per customer is up to 12.5 million euros of outstanding balance in one or more operations. The modality of the operation is freely agreed between the client and the credit institution, and may be a loan, line of credit and, in the case of advance invoices, commercial discount, factoring, etc.
For the distribution of all these products, the ICO works in collaboration with the credit institutions attached to each of the programmes.
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