Reports on the solvency of the self-employed and SMEs

From October 11, the date on which comes into effect the “Circular Pyme” Circular 6/2016 of the Bank of Spain, credit institutions are obliged to provide any autonomous or SMEs who want financial information according a standardized model, an extensive information that will allow them to qualify the credit risk of a ‘rating’ similar to that of large enterprises.

From now on, banks are obliged to provide this information and solvency include data in these reports with parameters or regulated formalities; that is, the rule requires to provide this information and the form and criteria to be used is regulated. Thus, information on the creditworthiness of companies is no longer inside the bank, but for those interested public.

Thus, this ‘rating’, which is obtained by using a methodology standardizes in which takes into account quantitative variables, qualitative (seniority, partners or sector) and behavioral (alerts or discovered), will allow the credit institutions to place SMEs or autonomous in the categories of “low risk”, “medium-low risk”, “risk-medium high”, “high risk” or “not available”. This rating on the creditworthiness of companies is a good tool to apply for new loans or credit lines.

To facilitate bank financing of these entrepreneurs, the Law 5/2015 of 27 April, promotion of corporate finance, added two new features designed to promote this financing for SMEs and freelancers, specifically included in the standard (Article 1.3 d) establishing these two obligations of credit institutions:

  1. The obligation to notify SMEs and freelancers, in writing and in good time, its decision to cancel or significantly reduce the flow of funding that has been granted them.
  2. The obligation to provide the SME or autonomous upon request, in a standardized format according to the criteria of the Bank of Spain, information on their financial status and payment history. Circular 6/2016 of the Bank of Spain, which takes effect on October 11, has approved the standardized model in which this information will be forwarded.


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