Bank promises
Let's first ten months back in time go. It is the beginning of the corona crisis, the second quarter of 2020 has just arrived. Fear and uncertainty are rife in the Netherlands. What will this virus do to us, we wonder. Not only in terms of health, but also economically. Fortunately, there are the banks. Many bankers are quick to voice the expectation that they are as saviour of Dutch business start acting. This is in contrast to the previous economic crisis, of which they were precisely one of the drivers.
The thinking was that the banks en masse would support SMEs. For example, with deferment of interest and repayments on existing loans. New credits would be lavished. This would all be made possible - in the form of additional guarantees - by our generous government. This would limit the risk to the banking system.
False hope
Back to the present. It is February 2021 and little has come of the above expectations. Certainly, at the beginning of the crisis, bankers were still willing to grant extensions. New, often state-guaranteed BMKB-C loans were also still granted - with some difficulty, admittedly. This was done on the assumption that the corona crisis would soon be over.
That turned out not to be the case. From the moment we were all heading for the second nationwide lockdown, there were hit the brakes hard. Fuelled by even greater uncertainty about the near future, banks' credit committees became increasingly more critical. Currently, companies are still being asked to provide more and more information. Waiting times are getting longer and longer and rejections are the order of the day.
This is how you can attract funding
Do you recognise yourself in the above situation sketch? No worries! Even at this time, it is possible to attract additional funding, provided you know how. Xolv's advisers have decades of experience in this field and know the diversions from the closed bank counter. We know better than anyone else what information the bank needs and how it should be presented. Think of the solvency ratio, the quick ratio and current ratio and cash flow.
We help entrepreneurs find the right financing, whatever the reason for that financing. It may, for instance, be deferred payment to the tax authorities, importing stock from faraway countries, customers paying later due to the crisis or that much-needed investment in company assets. For complex financing issues, we propose a short financing memorandum outlining the application clearly. In doing so, we also look beyond the traditional banking circuit and know the way to alternative financiers, such as direct lenders and other fintechs. Furthermore, we negotiate the terms and conditions of the financing on your behalf and keep a finger on the pulse even after it has been granted, if required.
This is how we pilot entrepreneurs with Xolv Finance safe through the crisis!
