Using FinTech for your company

What is FinTech?

FinTech is a combination of the words 'financial' and 'technology'. FinTech companies offer financial products and services through modern technology, such as:

• automated credit assessment
• digital control of your (financial) data
• smart and fast data analysis
• fast online application processes

This technology makes applying for finance much faster than with traditional lenders. Often, your bank statements are automatically analysed to determine how much money you can borrow. FinTech companies are a complement or alternative to banks, investors, asset managers and insurers.

Why is FinTech useful to you?

FinTech makes financial processes simpler and faster. For example, you can apply for and receive credit online within a few clicks. Here are the advantages:

• fast online application, and the money is in your account within 24 hours.
• apply without a business plan or annual figures.
• access to more working capital.
• high acceptance and high limit.

FinTech goes beyond finance. Financial technology is also in online payment solutions, automated accounting systems, crypto payments, and receivables management, for example.

Risks of FinTech

FinTech offers a lot of convenience, but it also has risks. Costs are often higher than with bank financing. This is because non-bank financiers incur more costs in offering finance. For them, accessing capital is more expensive than for banks. Also, non-bank providers have less collateral to get their money back if things go wrong with their customers. Therefore, read the terms and conditions of a contract carefully and calculate what the total cost is.

Which lenders work with FinTech?

The following lenders have the Certified SME Financier quality mark (all in Dutch):

• Factoring: do you want an advance on existing debtors? These are the parties: Voldaan, FreelanceFactoring, and Svea.
• Looking for crowdfunding? The platforms: Collin Crowdfund, Geldvoorelkaar, Voordegroei, Invesdor, and NLInvesteert.
• Take out a business loan? Direct lending via: Qredits, Pin Voorschot, Swishfund, Bridgefund, NLInvesteert, Floryn, CapitalBox, AltFin, DebitRoom, and Yeaz!.
• For property finance: Mogelijk.nl and EuroZaken.
• Financing by (institutional) investors: NPEX.

Banks also have their own FinTech channels:

• New10 (ABN AMRO, in Dutch)
• Fundr (Rabobank, in Dutch)

Online payments

Online payment is also a form of FinTech. Do you want to let your customers pay online? Then you can go to the following payment providers: iDeal|WERO, PayPal, Adyen, Mollie and Wise.

Is FinTech safe?

The central government supervises financial institutions such as banks, FinTech companies, and the entire financial system. This protects consumers and businesses that manage their money affairs with these institutions. The way of supervision is regulated in the Financial Supervision Act (Wft). The supervisory authorities are De Nederlandsche Bank (DNB) and the Financial Markets Authority (AFM).

Tips financing with FinTech

Use the following tips as you prepare your funding application:

• Convert the interest rate to annual interest and determine if that rate fits.
• Compare at least 3 providers. That way you avoid paying too much or getting little flexibility.
• Check the complaints desk (Kifid) for non-bank providers.
• Read the credit proposal carefully. It should be understandable with clear conditions.

Help with business financing

Are you looking for funding for your company? The KVK Financing Guide has all the information you need. Or call a KVK financial expert on 088 585 11 11.