The government was there lightning-fast at when coronavirus COVID-19 began to spread in the Netherlands too. There were various support measures presented, of which the Temporary Emergency Measure Bridging Employment (NOW) and the extended SME Guarantee Credit (BMKB) are even available already. Despite this quick action by the government, we are also seeing a certain panic. Many industry associations and interest groups are screaming blue murder and demanding even more far-reaching measures or else the number of bankruptcies is incalculable.
Credit insurers in splits
This uncertain situation is increasing pressure on credit insurers and banks. They are expected to not only looking at its own profit and loss account, but also taking social responsibility. On the one hand, credit insurers revise many of their limits, but on the other hand, they give their customers' buyers more time to pay outstanding invoices. So they are in a split. Fortunately, a €12bn government guarantee fund is in the pipeline.
Diverse policies at banks
Among Dutch banks, the picture is diffuse. ABC Finance, for instance, says its policy is unchanged. Spotcap, on the other hand, is taking measures: it is lowering the maximum financing per customer and even excluding some sectors completely. The major banks say they are open to new financing, although they are honest enough to say that it is very busy at the 'counter' and that existing customers have priority. For relations of leasing companies and commercial finance departments, some schemes are not available anyway. Almost all parties operate some kind of corona checklist to assess the newly emerging risks for each applicant. Each entrepreneur is also expected to provide a corona budget essays.
Looking for holdouts?
So ambiguity abounds, when it comes to financing in this day and age. Are you looking for guidance? Our partners at Xolv Finance can map out the market for you, identifying the impossibilities but above all, the possibilities in this special time. Even now, we are at your side as entrepreneurs with all financing questions. Get in touch with us!
