Business Loan Spain

Whether you’re launching a startup or expanding an existing company, a business loan in Spain can provide the capital you need. From online lenders to traditional banks, financing is available for equipment, working capital, hiring, or scaling operations.

Even if you’re new to the Spanish market, there are funding options tailored to both residents and foreign entrepreneurs – including self-employed freelancers and registered companies.

Types of Business Loans in Spain

Spain offers a wide range of business financing options, designed to support startups, SMEs, and freelancers alike. The right loan type depends on your business stage, revenue model, and what you need the funds for.

Common types of business loans in Spain:

• Startup loans
• Working capital loans
• Equipment financing
• Credit lines
• Government-backed loans
• Invoice financing
• Merchant cash advances

Startup Loans

Startup loans are aimed at newly established businesses or entrepreneurs in the early stages. These loans often require a solid business plan, projected cash flow, and basic incorporation documents.

Lenders may impose lower loan amounts and shorter terms due to the higher risk. However, some banks and fintech platforms specialize in startup lending and offer flexible terms, especially if you have some personal capital invested.

Working Capital Loans

Working capital loans are designed to cover short-term expenses like payroll, rent, or supplier payments. These loans help stabilize cash flow during seasonal dips or slow client payments.

They’re typically unsecured and have shorter repayment periods (3–18 months). Approval is often based on recent revenue trends and business bank statements rather than long credit histories.

Equipment Financing

This type of loan is used to purchase machinery, tools, or vehicles for your business. The equipment itself usually serves as collateral, which lowers the lender’s risk.

Loan terms often match the useful life of the asset, and interest rates are generally competitive. This option is common in sectors like manufacturing, logistics, and construction.

Credit Lines

A business credit line gives you flexible access to capital when needed. You only pay interest on the amount you draw, not the full credit limit.

This option is ideal for managing fluctuating expenses or emergency costs. Credit lines can be revolving or non-revolving, and are often granted based on turnover and account history.

Government-Backed Loans

Spain offers various government-supported financing options through institutions like ICO (Instituto de Crédito Oficial). These loans often come with lower interest rates and longer grace periods.

They are available through participating banks and usually support innovation, digitalization, or sustainability initiatives. However, the application process may be slower and more documentation-heavy.

Invoice Financing

With invoice financing, you borrow money against your outstanding invoices. It’s a useful way to unlock cash tied up in unpaid bills from customers.

This method is particularly common in B2B businesses. The lender advances a percentage of the invoice (usually 80–90%) and releases the rest once the client pays, minus fees.

Merchant Cash Advances

This financing method allows you to receive a lump sum upfront in exchange for a percentage of your future daily card sales. Repayments are automatically deducted until the loan is paid off.

While easy to qualify for, merchant cash advances often come with high effective interest rates. They are best suited for retail or hospitality businesses with steady card transaction volume.

Understanding Business Loans in Spain

Business loans in Spain function similarly to personal loans but are tailored to the needs of registered companies, sole traders (autónomos), and startups. You borrow a fixed amount from a lender and repay it over a set period with interest. Most loans are unsecured, though larger sums or equipment financing may require collateral.

Loan terms range from 6 months to 10 years, depending on the purpose and loan type. Interest rates vary based on your revenue, creditworthiness, loan amount, and repayment period. Some lenders also charge origination fees, early repayment fees, or require additional documentation such as tax filings or business bank statements.

Many Spanish banks and fintech lenders offer business loans fully online, with quick approval times if your financials are in order. Others may require a more traditional process, including a formal business plan, balance sheets, and legal registration proof.

Example: Business Loan Breakdown

Here’s a sample loan offer for a small business looking to fund inventory expansion:

Loan Detail	Value
Loan Type	Working Capital Loan
Loan Amount	€20,000
Purpose	Inventory and supplies
Business Type	Registered SME (Retail)
Monthly Revenue	€12,000
Interest Rate (Nominal)	5.8%
APR (TAE)	6.4%
Loan Term	36 months
Monthly Payment	€610.29
Total Repayment	€21,970.44
Origination Fee	€300 (1.5%)
Collateral Required	No
Early Repayment Allowed	Yes (no penalty)
Application Process	100% Online

How to Apply for a Business Loan in Spain

Applying for a business loan in Spain involves several steps, but the process can be fast if your financials and documents are in order. Many lenders now accept online applications, especially for small and medium-sized businesses.

Step-by-step process:

1. Define your loan purpose
   Start by clarifying what the loan is for: inventory, equipment, hiring, marketing, etc. This helps determine the right loan type and amount.
2. Check your eligibility
   Lenders usually look at your business age (min. 6–12 months), monthly revenue, credit history, and legal registration (CIF/NIF for companies or NIE for sole traders).
3. Compare lenders
   Evaluate loan amounts, interest rates, fees, and repayment terms. Decide whether you prefer a bank, fintech lender, or government-backed program like ICO.
4. Gather required documents
   Common requirements include:
   • Valid ID (passport/NIE)
   • Business registration certificate
   • Tax returns or VAT reports
   • Bank statements (last 3–6 months)
   • Profit and loss statement or financial summary
5. Complete the application
   Fill out the online form or meet with the lender. Submit documents and specify your requested amount and loan purpose.
6. Wait for approval
   Some platforms offer instant pre-approval. Others may take 1–5 business days to assess your application.
7. Review and sign the contract
   Once approved, read the loan terms carefully, including interest rate (TAE), fees, and repayment schedule. Sign digitally or in person.
8. Receive the funds
   Funds are usually transferred within 24–72 hours after signing. Use them strictly for the stated business purpose, especially if required by the lender.

Eligibility Criteria for a Business Loan in Spain

To qualify for a business loan in Spain, you need to meet certain minimum requirements. While specific criteria vary by lender, most follow similar baseline conditions to assess risk and repayment ability.

Key eligibility criteria:

• Registered business or sole trader (autónomo)
• Active for at least 6–12 months
• Monthly revenue or turnover
• Spanish tax ID (CIF or NIE)
• Business bank account
• Clean credit history (business and/or personal)
• Clear loan purpose

Registered business or sole trader

You must operate as a legally registered company or self-employed professional in Spain. Lenders may require proof of registration with the Spanish tax agency (Agencia Tributaria) or social security system.

Active for at least 6–12 months

Most lenders require your business to be operational for at least 6 to 12 months. Newer businesses may be eligible for startup-specific loans, but standard financing typically demands a proven track record.

Monthly revenue or turnover

You’ll need to demonstrate consistent income, usually via bank statements or tax filings. Minimum monthly revenue requirements vary but often start around €1,500–€3,000.

Spanish tax ID (CIF or NIE)

Companies must provide a CIF (Código de Identificación Fiscal), while sole traders use their NIE (Número de Identificación de Extranjero) for identification in the loan process.

Business bank account

Lenders require a Spanish business bank account to verify income and disburse the loan. The account should reflect business activity over recent months.

Clean credit history

A good credit record improves approval chances and lowers interest rates. Some lenders consider only the business score, while others review both personal and business credit files.

Clear loan purpose

You must specify how the funds will be used – such as buying equipment, hiring staff, or managing cash flow. Lenders are more likely to approve loans with defined, justifiable purposes.