Options for Financing Businesses in the Netherlands and Why Financial Startups are the Best?
When you plan to set up a business in the Netherlands, it’s important to research about where you can get funding for your business from. An accountant can be your best source of information as they have thorough knowledge of what type of funding is available and how you can obtain it.
When it comes to financing a business in Holland (the Netherlands), two important options available are a Dutch financial startup like BridgeFund and a regular bank. Plus, there are other options. Let’s take a look at them
Business funding in the Netherlands can be provided by the banks like ABN Amro, ING and Rabobank (these are called the big 3), or even other banks like Triodos. You can find the comparison between them on some websites but as these sites are not really independent, it’s a good idea to shop around.
Financial startups are another great option for business loans in Holland, especially when getting a business loan from banks in the Netherlands is difficult or impossible for you.
Crowdfunding is also a good option for entrepreneurs for raising funds for their business. Businesspersons can raise small amounts of capital from large groups of people via the internet to get financing for their company. 2 years ago, even BridgeFund were funded 1 million euros through crowdfunding. Many crowd funding platforms are available.
Angel investments are perhaps the oldest equity investors in startup businesses. These are generally wealthy people that come together in investor networks.
Some of these organizations offer information of their members whereas some others offer financial support and expertise for new as well as existing companies working with technology, food and health industries. Some are interested in investing in promising mobile/internet startups, while some others support ambitious businesspersons to develop their company or even support the development of existing companies.
Venture capital means money invested in a project which has a significant amount of risk. This is usually a new or expanding business. Some of these support growing SEMs, some others invest in innovative ‘zorgondernemingen’ i.e. healthcare companies, some are interested in investing into young innovative technological entrepreneurs who wish to offer new products, while some others support inspirational entrepreneurs and help them reach their full potential and healthy sustainable growth.
Grants and Funds
There are even several funds and grants which offer funding for the businesses in the Netherlands. Many of these are offered by the Dutch government. Plus there are several government schemes too.
Looking at all these options, one may feel daunted regarding which one of these to choose. By and large, Dutch financial startups like BridgeFund seem to be beneficial from many points of view. Let’s consider these benefits one by one.
When you want to start your business, you don’t have time to wait and you want immediate financing. Financial startups have a unique system that approves your loan far more quickly than a bank does. In comparison to a bank, which takes at least six weeks to go through the hassle of paperwork and a lot of questions, and then around two weeks to move the money to your account, financial startups has a much more efficient and faster system of approving the loan and handing you the money.
Fast Loans for SMEs
If you are an SME, a bank is bound to take a lot more time and give you a too insufficient loan. On the contrary, a financial startup, as it’s especially oriented to serve SMEs, process your loan fast. Financial startups are founded by the ex-CEOs of companies who have a soft corner for SMEs. They understand the needs and frustrations of the founders of the SMEs and empathize with them. Being former CEOs, they understand better than anyone else how necessary it is for the entrepreneurs to have money to start the business.
They also know how they can get far better returns on the investment in these businesses than the current bank interest rates, and so, they are very much interested in lending you the money.
Guidance from Experts
Banks don’t but financial startups do offer guidance for your business planning, regarding how you can make the best use of finances, and how you can succeed in your business venture.
Financial Startups are Fast Growing
The economy of the Netherlands and Europe is growing at full speed and has so many opportunities for entrepreneurs who should only grab them. The banking system is becoming a poor option for loans, because it’s too slow and too uncertain. In such a scenario, fortunately, more and more online financial startups are emerging to offer short-term bridging loans. You can use these loans for the growth of your business and take it to the next level. More and more entrepreneurs prefer this option and so, these financial startups are fast growing. They are able to fund businesses in millions.
Since most Dutch financial startups like BridgeFund work online, they don’t put you in the hassle of business plans, annual reports and other paperwork. Once you apply entirely online, you get a customized offer for your needs within 24 hours.
If you want to obtain finance, you should choose the right option which will get you the money quickly and without much hassle. You are fortunate enough because financing a business in Holland has so many options and you can choose the one that suits you the most. All the best!