Conservative major banks
The Netherlands has for a very long time had loans partly guaranteed by the government. With this, the government once started with the aim of Stimulate Dutch small and medium-sized enterprises (SMEs). At the time this scheme was introduced, lending to SMEs was the exclusive playing field of the Dutch big banks. They finance conservatively, looking mainly at past results and less at future opportunities. In doing so, banks finance on the basis of collateral. No or insufficient security? Then often no financing either.
Introduction BKMB
The Dutch government once wanted to change this. It did so by introducing the State Guarantee. By now, this scheme has been called the Guarantee for SME loans (BMKB). This allowed a bank to half of the credit demand of an entrepreneur into a surety loan, For which the state was 90 per cent guarantor.
Corona regulation BKMB-C
As one of the first measures to deal with the corona crisis, the State broadened this scheme to include a corona scheme: BKMB-C. Until the end of 2021, the State guarantees 75 per cent and conditions have been relaxed. The guarantee fee has also been reduced to 2 per cent for loans of up to 2 years and 3 per cent for loans of up to 4 years. Other important basic conditions are:
- Fundamentally, the company should financially sound are. This is a broad term, but you understand that it helps if the results in the years before the corona crisis broke out were positive.
- The credit requirement should be a result of the corona crisis.
- The securities should inadequate Are for providing a "normal" bank credit.
- The company has maximum of 250 employees and no more than €50 million turnover.
- An entrepreneur who holds a majority stake in the company must give commitment in the form of a personal guarantee.
Rigid process
In principle, the implementation of the special BKMB-C scheme was - as of old - the responsibility of the major Dutch banks. In practice, we found that the provision of BMKB-C loans was anything but smooth - say: extremely difficult - expires. Banks continue to look at each application extremely critically. When assessing a company's viability, bankers almost always assume the blackest COVID19 scenario. A scenario that is not positive for almost any company.
Thinking along with entrepreneurs
Fortunately, the scheme has now been opened to non-bank financiers. Why do we use the word 'lucky'? Because almost without exception, these non-bank financiers are all innovative financiers are those who can do much better thinking along with the entrepreneur. They are often already used to granting loans with little or no collateral and are not too difficult to do so. In addition, their assessment process is without exception much shorter - and thus faster - than that of the major banks. Those flexibility and speed is exactly what many companies need in these uncertain times.
Are you also not getting through to your own bank? And do you insufficiently know your way around the broad (alternative) financing landscape? Then contact the professionals at Xolv Finance. We have the most complete network of BMKB-accredited financiers who will be happy to help you on your way!
