For your company you have a car or delivery van, a laptop, a telephone, tools, or other business assets. And you also want a budget for disability insurance and your pension. You can already pay a lot with your own money (savings) and from your turnover. Do you still need extra money? Then look here where you can borrow business money as a self-employed person.
You can continue your business with €5,000 to a maximum of €50,000. Here is a list of financing options. These allow you to finance business assets and working capital quickly and easily. Working capital gives your financial space if you temporarily have more expenses than income in your company. Borrowing business money costs money. So, start within your company.
Internal and nearby
First, organise financial space within your company. Make sure to check if there are tax deductions (in Dutch). For example, you can apply an investment deduction if you buy business assets. And let your customers (debtors) pay faster. Bootstrapping allows you to make optimal use of available resources while keeping your costs low. This way you reduce your external financing needs. Before engaging commercial providers, consider borrowing money from family or friends. When choosing a financier, look at the interest rate, duration, and closing costs.
Borrowing money from family or friends
Your family and friends are close to you and support you. Sometimes with money. Perhaps you need money temporarily as a bridging loan or for a longer period of time if you are going to invest more money in company assets. If you borrow money from family or friends for your business, it is a business loan. So, address it as business. Put the agreements on paper and pay interest and repayment. That is how you keep the relationship good.
Do you need a laptop or phone? The supplier can often give you a credit. Buying on instalment costs extra money. When purchasing a smartphone, for example, the supplier combines the instalment with the subscription in the monthly amount.
A is a business loan up to a maximum of €50,000. You mainly use this for investments in company assets and/or a stock of products. The term is between 1 and 10 years. Each month you repay part of your loan plus interest.
Fintech stands for financial technology. Fintech financiers organise the financing process with online technology. They usually offer temporary funding for working capital. The amounts are from €5,000 to €250,000 and higher.
With factoring (in Dutch), a bank or factoring company provides you with a credit or largely advances an invoice. Factoring can be used for invoices between entrepreneurs from €100. Factoring is not available for customer invoices.
With leasing you finance business assets. For example, a car, delivery van, machine, or computer. There are several types of leasing. With a financial lease you take out a loan. For example, you own a car and repay the financing in instalments. You also bear the economic risk. In the case of an operational lease, the lease company remains the legal and economic owner. You are renting an object, as it were. A private lease for your car is also an alternative for the self-employed.
Assistance for the self-employed
In the event of a financial setback, you can apply for income support and/or credit via the Decree on assistance for the self-employed (Bbz). The Bbz offers a credit of €37,000 for entrepreneurs who have been active for up to 1.5 years. Longer established entrepreneurs can apply for a maximum of €205,000.
Tips and warning
Use the following tips as you prepare your funding application:
- Make sure your administration is up to date, so that a financier can quickly assess your application.
- Convert the interest to an annual interest rate and determine whether that rate is appropriate. After an investigation, the Netherlands Authority for Financial Markets (AFM) warns of high interest rates of up to 126% on average, with peaks of 400% for short-term loans of €5,000 for 3 months. The MKB Financiering Foundation gives a maximum of 20% per year for costs including interest. The Foundation has a quality mark for affiliated financiers and financing advisers.
- Compare offers from three financiers to make a well-considered choice.
- Read the fine print of the credit proposal. An understandable contract, a quality mark and membership of a trade association will help you make your choice. A quality mark and membership of a trade association ensure that financiers must adhere to the rules of a code of conduct. The code of conduct requires them to be clear during the financing process.
Increase your success
You select a financing form (in Dutch) in advance via the financing flow chart so that you can find a suitable financier. Also, view the criteria (in Dutch) that financiers use before you apply for a business loan as self-employed professional. If necessary, adjust your business operations beforehand and discover alternatives if you score less on a criterion.
More choice and help
Do you have a question about financing or money matters? Contact the Netherlands Chamber of Commerce KVK Financing Desk (in Dutch) free of charge: 0800 10 14