When a company is thinking about requesting financing, what interests them most is how much this financing will cost, that is, how much the interest on the loan will be. This percentage will vary depending on different factors to take into account such as the term, the amount, the characteristics of the company or the risk.
Since Good Finance began her activity
There are many loans that our platform has been able to complete so far through private investors willing to make a return on their money with varied interests by lending directly to companies. In this post we tell you how we set the interest rate of the loan and review the history of the platform.
How does Good Finance set the interest on the loans?
The possibility of reducing interest on loans
First, it must be explained that Good Finance sets a maximum interest rate for each loan, which is published together with the application to make it available to savers or investors.
They can lend their money at the interest rate they want but always below or equal to the maximum rate set by MytirpleA. Therefore, in the event that there are people willing to lend cheaper or below that interest rate, they may do so, thus reducing the final interest rate of the loan.
The valuation and calculation of your maximum interest rate on loans
To calculate the interest on the loans we use the Good Finance valuation, which combines an automatic rating, based on a scoring that takes into account the variables used in this model such as: negative information, financial information, commercial information and business structure, with an expert Rating generated by the Risk Area of Good Finance that collects updated financial information of the current year, the valuation of the additional guarantees (such as, for example, endorsement of the partners) and any other type of information received that it provides value for greater knowledge of the company in question.
Taking into account both data, a Good Finance Rating is generated, which will go from an A + rating as the highest rating, and F, as the minimum rating the company has to obtain in order to raise funds through Good Finance.