Avalmadrid, the Community of Madrid’s Reciprocal Guarantee Society (SGR), and the private credit investment platform Zintra Capital Credit have formalized the expansion of credit sources for Madrid’s business community through a new financial product using promissory note programs.
The maximum guaranteed limit under this new product is set at 1.75 million euros per beneficiary, enabling coverage of transactions relevant to liquidity, investment, and growth. Moreover, this agreement fosters connections between Madrid-based companies and institutional investors, will bring visibility of Madrid firms in international markets, and will indirectly facilitate capital inflows into the regional business sector.
This financing modality allows companies to access non-banking financing on competitive terms, with the backing of Avalmadrid’s joint guarantee. An alliance, ratified by an addendum to its collaboration agreement, which is designed not only to supplement and broaden funding sources but also to accelerate liquidity mobilization.
For Lorenzo Alonso Felipe, CEO of Avalmadrid, this extension of the agreement “strengthens Avalmadrid’s commitment to innovation in financial products, enabling Madrid’s SMEs not only to rely on traditional credit but also to venture into promissory note markets with the security provided by our guarantee.”
For his part, Jose Corral, managing partner and CEO at Zintra Capital, has highlighted that this tool “provides essential agility in the current context, facilitating access to credit sooner and more effectively for those generating activity and employment in Madrid.
The agreement establishes an agile framework in which operations will be analyzed and approved under standards of “best practices.” SMEs interested will benefit from adjusted financing costs, with guarantee fees starting at 1% annually, thereby boosting the competitiveness of the local business environment.
