Fiduciam completes two loans in Spain, despite state of emergency
Short-term and marketplace lender, Fiduciam, continues to lend in Spain during the Covid-19 state of emergency with two loans completed this week, totalling EUR2,445,000.
The nature and complexity of the businesses involved meant that traditional banks were unable to provide the quick turnaround essential in both cases. However, Fiduciam, which has continued to lend throughout the crisis both in the UK and Europe, offered a solution for both.
Last week the Spanish government announced the COVID-19 state of emergency will be extended by another two weeks until 24 May. The state of emergency makes it very difficult to close any loan transactions, as notaries are only attending critical matters and signatories have to overcome many obstacles to travel to those notaries. In one of the transactions Fiduciam closed this week it took four weeks for one of the signatories to be able to get to the notary’s office.
The deals, one to provide working capital and one to complete a project, halted as a result of the coronavirus crisis, had differing, but complex, aspects that Fiduciam overcame, even during the lockdown.
The first loan, a 24-month bridge, Fiduciam agreed in a timeframe that could not be achieved by mainstream banks in Spain. It provided working capital for a construction company to proceed with a number of building projects for public authorities. It is secured by unencumbered and tenanted warehouses in the suburbs of Barcelona.
The second transaction was for a villa within a golf complex on the Costa del Sol, where work had stalled due to the state of emergency. It was complicated by the fact that the borrowers were from different countries. Fiduciam worked across three countries to complete the loan, when local banks were unwilling because the principals’ track record was not in Spain.
Cristina Villen, business development manager for the Spanish team at Fiduciam, says: “It’s always pleasing to be able to provide funding for projects when the borrower has struggled with traditional lenders. But at the moment, given the COVID-19 crisis, it is especially gratifying to have been able to overcome the hurdles caused by the state of emergency. It goes to show that even during the most adverse situations businesses are working to get things done.
“Whilst the COVID-19 crisis has very much tested Spain, I am confident my country will come out of it strong, and I try to add my little bit by standing by our Spanish entrepreneurs and SMEs.”