SMEs do not have easy access to a business credit. That is generally known. However, I recently came across an article from the Dutch Banking Association (NVB) that made me look at things differently. The article Business Services dates from March 2017 and is therefore up to date. It gives a good picture of how the financing of small and medium-sized enterprises is regulated in the Netherlands. If you want to compare business loans, it is best to read further.
According to figures from the NVB, 8 out of 10 entrepreneurs in SMEs do not rely on financing. Not that they do not need it, but they can get enough money internally. 80% of those who apply for corporate credit will eventually receive green light to borrow money. The total business loans in the Netherlands amount to 260 billion euros. Of this, 126 billion euros were lent to SMEs. The vast majority (85%) of SMEs with a business credit have a loan of up to 250,000 euros. Five percent of this group has a loan of more than 1 million euros.
Bank credit is still the most important credit to companies, but banks also look carefully at alternative financing. One should think of factoring, leasing, microfinancing and crowdfunding. Do you want to compare business loans ? Then you have to take this alternative financing into account. In terms of percentage, crowdfunding and microcredit are still in their infancy. Factoring and leasing accounts for 7.6 billion euros and are increasingly used to give credit to customers. When applying for a business loan, you must upload your company data. The application is then assessed by the computer on a number of points. If sufficient security can be given, the loan is arranged in a short time.
ABN AMRO is very active in setting up online platforms that provide business loans. Three digital platforms were established within a year. New 10 focuses on small and medium-sized businesses in the Netherlands. Within 15 minutes, New 10 answers whether a loan is possible or not. Prospery focuses on asset management in Europe. Frankx is for SMEs that do business internationally. At Frankx companies can pay in 26 different currencies.
Comparing business loans on the internet is one thing. But how do you know which bank has the best offer? Do you only look at the cheapest price or also the conditions? The Chamber of Commerce has funding experts who, together with you, can see which financing suits you best. The Chamber of Commerce is organizing three information meetings on financing in April 2018. These sessions are in Amsterdam, Rotterdam and Eindhoven. In addition to information, there is plenty of opportunity to ask questions.
An online business credit application has a few important advantages compared to a call at the bank. You will hear almost immediately whether you are eligible for a loan and you can compare rates with each other. A fairly new credit is microcredit for SMEs . Microcredit we know from developing countries in Africa where poor people could take out a small loan to start their own business. In 2008 it was first introduced in the Netherlands. The maximum amount that can be borrowed is 50,000 euros.
The Qredits foundation is a well-known name when it comes to microcredit. A deposit or a private contribution of capital is not mandatory with Qredits. The minimum duration of a microcredit is one year. Furthermore, the company that makes the application must be located in the Netherlands and the trading activities must focus on the Netherlands. Qredits cooperates with the government and the banks and is therefore a trusted partner.