Accessing business funding in Spain can be challenging—especially for expats, self-employed individuals, or entrepreneurs without a conventional financial profile. Traditional banks often impose strict requirements around income verification, credit history, and business age, leaving many excellent business ideas unfunded.

If you own property in Spain, there is a powerful alternative: using your real estate as collateral to unlock the capital you need. This strategy allows you to convert the value of your home or commercial property into business funding, without selling your assets or relying on rigid bank criteria.

In this guide, we’ll explore how secured loans work for business purposes in Spain, what you need to qualify, and why they may be the most efficient way to finance your company.

Turning Property Into Capital for Your Business

Owning real estate in Spain isn’t just a lifestyle choice—it’s a financial asset. As a property owner, you can use the value of your property to obtain a secured loan, which is a financing solution backed by your home or commercial space.

This is especially valuable for entrepreneurs who:

• Have recently moved to Spain and lack an established credit history
• Work as autónomos or freelancers with variable income
• Need fast access to capital to take advantage of business opportunities
• Want to avoid rigid bank lending processes

Using a secured loan, you can obtain a substantial sum of money—often much higher than what banks would offer through an unsecured loan—and use it to fund or grow your business.

How Secured Loans Work for Business Financing in Spain

A secured loan allows you to borrow money against the value of a property you own in Spain. The property serves as collateral, reducing the risk for the lender and allowing more flexibility in approval.

Unlike traditional business loans, a secured loan doesn’t require detailed proof of business income or extensive financial statements. Instead, the key factor is the equity available in your property.

This makes secured loans an ideal tool for:

• Business expansion
• Launching new operations
• Paying staff or suppliers
• Purchasing inventory or equipment
• Consolidating business-related debts

Funds are usually disbursed in a lump sum, and you’ll agree to a repayment structure—monthly payments or, in some cases, a bullet payment at the end of the loan term.

Requirements to Secure Business Funding with Your Property

To apply for a secured business loan in Spain using your property, the following basic conditions typically apply:

1. You Must Own a Property in Spain

This can be a residential or commercial property. You must be listed as the legal owner, and the property must be free of legal disputes or excessive debt.

2. Minimum Loan Amount: €20,000

Lenders typically offer secured loans starting from €20,000. This is due to the administrative and legal costs involved in processing and managing the loan.

3. Loan-to-Value Ratio (LTV)

You can usually borrow up to 40–60% of the property’s current market value. If your home is valued at €300,000, for instance, you may be eligible to borrow between €120,000 and €180,000, depending on your profile and the lender.

4. Documentation

• Valid passport and NIE (Número de Identificación de Extranjero)
• Escritura (title deed) and nota simple from the land registry
• Basic financial or business details (optional for some lenders)

Importantly, most lenders will not require extensive business financials, tax returns, or cash flow projections if the property value supports the requested loan.

Advantages of Using Property as Collateral for Business Loans

Using your property to secure business funding comes with several clear advantages, particularly when compared with standard unsecured or bank-issued loans.

Greater Access to Capital

Because the loan is backed by real estate, you can access significantly larger funding than you might qualify for through unsecured credit.

Lower Dependence on Income Verification

Lenders are more flexible about income requirements. Even if you don’t have a full-time salary or long trading history, your application can still be approved.

Faster Approval and Payout

Secured loan applications can be processed quickly, often in a matter of weeks, allowing you to access funds in time to take advantage of business opportunities.

Flexible Repayment Options

Depending on the lender, you can choose between monthly repayments (interest or principal + interest) or opt for deferred payment structures that allow you to repay everything at the end of the term.

Scenarios Where This Option Is Ideal

Secured loans are not just for those in financial trouble—they are used proactively by entrepreneurs to scale operations, manage cash flow, or strategically invest. Some ideal use cases include:

• Launching a new retail location, café, or service business
• Investing in marketing, product development, or technology
• Replacing expensive short-term credit with more stable funding
• Meeting seasonal business expenses or bridging cash flow gaps

Even if you’ve been denied a traditional loan, a secured loan may still be an option if you own property.

How Kredit Spain Can Help You Fund Your Business Using Your Home

Kredit Spain specializes in providing secured loans for a variety of clients, including small business owners, company directors, and foreign residents in Spain. The company works with both SL companies and autónomos and understands the challenges that non-residents and expats face when seeking financing through traditional banks.

Kredit Spain offers:

• Fast evaluations and approvals
• Flexible terms tailored to your business needs
• No unnecessary bureaucracy or invasive financial scrutiny
• Transparent processes and professional support

If you own a property in Spain and need capital to fund your business plans, Kredit Spain can help you unlock that value with a secured loan designed around your goals.

Conclusion: Is This the Right Option for Your Business?

If you are a property owner in Spain and need funding for your business, a secured loan may be the most efficient and flexible option available. It bypasses many of the obstacles involved in traditional lending and allows you to convert your property equity into growth capital.

With minimal documentation, fast processing, and support for expats and entrepreneurs, secured loans are becoming the go-to choice for smart business funding in Spain.

Ready to leverage your property to grow your business? Contact Kredit Spain today to explore your options.