How are the ICO credits?

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ICO credits , also known as ICO Lines, are financing lines granted by entities that have signed an agreement with the Official Credit Institute (ICO) to grant loans for self-employed workers, as well as for small and medium-sized companies.

In this way, the ICO establishes the total economic endowment, the basic characteristics and financing conditions and signs agreements with the banks so that they are the ones that grant the credits. The entities, for their part, assume the risk of default, which is why they will analyze the viability of the transaction and determine the requirements of the credits and the payment guarantees required.

The credit institutions answer yes or yes to the ICO for the return of the granted financing, as well as the ICO responds to the entity in relation to the obligations established in this bilateral financing agreement.

ICO loan for companies and entrepreneurs

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It is a type of financing aimed at self-employed workers, companies and public and private entities that make productive investments in the national territory and that require liquidity. They can also access these private credits and communities of owners for the rehabilitation of their homes.

  • Amount: up to 12.5 million euros per holder, either in one or several transactions.
  • Modality: on loan or in leasing if it is used for investment.
  • Bankable concepts: liquidity (current needs to pay current expenses, payroll or payments to suppliers, among others, with a limit of 50% of the financing obtained for this purpose) and productive investments such as the acquisition of productive fixed assets (new and second-hand), passenger cars (up to 30,000 euros), business acquisition and VAT (or IGIC) linked to the investment.
  • Investment period: the investment to be financed may not have begun before January 1, 2016 and must be carried out within a maximum period of 12 months from the date of formalization of the loan.
  • Repayment period:
    • If liquidity is financed : between 1 and 4 years with the possibility of requesting 1 year of grace.
    • If investment is financed : between 1 and 20 years with up to 2 years of grace.
  • Interest rate: you can choose between a fixed or variable interest rate.
    • Variable interest: (revised semi-annually) between 2,293% and 4,873% APR, depending on the term or if it lacks.
    • Fixed interest: from 2,324% to 6,211% APR according to the term and the shortage.
  • Commissions: no commission for opening, study or availability. In case of early repayment, the surcharge will be 2.5% when the residual life of the operation is greater than one year and 2% when it is less than or equal to one year.
  • Processing: the application can be processed in a bank or in a savings bank that collaborates directly with the ICO. The credit institution that we go to will be the one in charge of studying our petition and approving or denying it according to its own risk criteria.
  • Guarantees: the required guarantees are determined by the financial entities that grant the ICO loans. They can be personal guarantees, mortgages, joint and several guarantees, etc.
  • Compatibility: these credits are compatible with the grants granted by the Autonomous Communities and the rest of the public institutions, provided that the maximum limits established by the European Union are respected.

ICO Credit SGR / SAECA 2018

This line of credit is an exclusive product for those self-employed, SMEs or Spanish or foreign companies operating in Spain, which have the endorsement of a Reciprocal Guarantee Corporation (SGR) and which is covered by this line of financing. Let’s see in more detail what are the conditions that apply:

  • SGR agreed: we can check which SGR operates in each Autonomous Community in the CESGAR portal .
  • Amount: up to 2 million euros per holder, either in one or several transactions.
  • Modality: on loan or in leasing . In liquidity operations, it can only be borrowed.
  • Percentage of the operation guaranteed by the SGR: the SGR or SAECA can decide the amount of the operation that guarantees, with a maximum of up to 100%.
  • Destination of the loan : to cover liquidity needs (current expenses, payroll, payments to suppliers, purchase of merchandise, etc.), with a limit of 50% of the financing obtained, or to finance investments in productive fixed assets (new and second hand) and for the creation of companies abroad . It includes the purchase of passenger cars, whose price (VAT included) does not exceed 30,000 euros, acquisition of companies and VAT (or IGIC) linked to the investment.
  • Repayment period:
    • If liquidity is financed : between 1 and 4 years with the possibility of requesting 1 year of grace.
    • If investment is financed : between 1 and 15 years, with an option of up to 2 years of grace.
  • Interest rate: you can choose between a fixed or variable interest rate (Euribor to 6 months):
    • Variable interest : between 2,293% and 4,873% APR
    • Fixed interest : between 2,324% and 5,988% APR
  • Guarantee cost: the SGR may charge up to 2.3% in one-year operations, 4% in 2, 3 and 4 year operations and 4.3% in operations over 4 years. In addition, it will charge up to 4% of the financing amount guaranteed as a mutual socialist fee, which will be paid once at the start of the operation. This amount will be reimbursed to the client once his relationship with the SGR is terminated.
  • Commissions: up to 0.50% for study expenses, to be charged by the SGR or SAECA. In the event of early redemption, a 2.5% penalty will be applied (or 2% if there is one year or less for expiration).
  • Processing: the application can be presented at the corresponding SGR / SAECA or at a collaborating financial institution.
  • Guarantees: the required guarantees are determined by the financial institution or the SGR / SAECA after carrying out the corresponding risk analyzes.
  • Compatibility: this loan is compatible with the grants granted by the regional administrations or by other public institutions.

International ICO Credit 2018

Image result for internationalThis loan is aimed at self-employed workers and Spanish or mixed companies with at least 30% of Spanish capital that make productive investments outside our borders or need to cover their liquidity needs.

  • Amount : up to 12.5 million euros per client or its equivalent in US dollars for Tranche I and up to 25 million euros or its equivalent in dollars for Tranche II, either in one or in different operations.
  • Modality: on loan or in leasing if it is used for investment.
  • Maximum financing : up to 100% in investment projects.
  • Bankable investments:
    • Liquidity : current needs to pay current expenses or operating expenses.
    • Investments : as productive fixed assets (new and second hand), passenger cars (up to 30,000 euros), acquisition of companies abroad and VAT or similar tax that is settled in Spain as supported.
  • Repayment term: in the loans destined to liquidity operations, the term may vary between 1 and 4 years, being able to opt for a year of lack of principal. In investment operations, the amortization period may range from 1 to 20 years, being able to opt for a 2 year principal deficiency if Investment is financed or a 3 year grace period if Medium and Long Term Exporters are financed.
  • Interest rate: fixed or variable interest (in euros or dollars) plus the margin established by the financial institution in accordance with the repayment term
  • Commissions: the financial institution can charge a commission at the beginning of the operation. In addition, in case of early repayment, a surcharge of 2.5% will be charged on the amount canceled (or 2% if there is one year or less for the expiration).
  • Processing: can be processed in a collaborating entity with the ICO. This will be responsible for studying our request and approving or denying the operation according to its risk criteria.
  • Guarantees: as in the previous cases, the guarantees to be provided are determined by the credit institution itself, except for the guarantee of an SGR or SAECA.
  • Compatibility: this line of financing is compatible with the aid received from both the Autonomous Communities and other institutions.

ICO Exporters Credit 2018

Financing designed for self-employed workers and companies with registered office in Spain that want to obtain liquidity by advancing the amount of their invoices from their export activity or that need to cover the previous costs of production and processing of their exportable goods.

  • Amount : up to 12.5 million euros per customer, both in one and in several operations.
  • Modality: advance of the amount of the invoice by means of the contract that each client agrees with the financial entity.
  • Bankable concepts: advances of invoices that have a maturity of no more than 180 days or pre-financing to cover the costs of production and preparation of a good or service destined for export.
  • Interest rate: the interest rate is variable, plus the margin established by the credit institution to which we go.
  • Commissions: the entity can only charge a commission at the beginning of the operation. In addition, in case of mandatory early amortization, you may be charged a 1.5% penalty on the canceled capital.
  • Processing: in a financial institution collaborating with the ICO.
  • Guarantees: determined by the corresponding lender.
  • Compatibility: like the rest of the ICO credits, this line of financing is compatible with the grants received from the Autonomous Communities or from other institutions.