Global FinTech Guide
Country Name
Loan services / factoring / loan broking / finetrading
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time. 

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.


Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

There are no reservations. On the contrary, it is a fast-growing market.

Legal affairs  

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

As for Fintech companies that provide loan services, Spanish law does not generally impose any formal or material requirements for granting loans. In plain words, loans are governed by the general commercial law. An exception to this is that for consumer loans the agreement has to be drawn up on paper and they use the denomination of financial credit establishments (“Establecimientos Financieros de Credito”), specialized in the granting of credits and loans in a specific field such as consumer credit, mortgage credit, credit cards, guarantees, leasing (leasing with purchase option), factoring (assignment of a credit portfolio). 

On the one hand, for loans of considerable amount, the market practice is to grant a loan in writing before a Spanish notary so that the lenders (FinTech companies) can enforce the loan through special foreclosure procedures for notarized agreements.  On the other hand, for loans of small amount, an agreement between the parties is enough.  P2P lending is considered as a crowdlending activity under Spanish law and is regulated in Law 5/2015, of April 27, on the Promotion of Business Financing ("LFFE").

As for FinTech companies that provide brokerage, finetrading and ancillary services, as long as they are not conducted with funds collected from the general public (i.e. banking activity), there would be no need for the FinTech to obtain a bank license.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

This is a non-regulated area (generally it can be performed without a licence) and this facilitates that it is a growing business, specifically in consumer credit.

Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

It is a very fast-growing market. However, there is no recent public data available.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area




© 2022, Ventura Garcés. All rights reserved by Ventura Garcés as author and the owner of the copyright in this chapter. Ventura Garcés has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.


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