The trend is driven by several factors: banks, partly due to increased regulation and risk aversion, are applying stricter lending requirements. Alternative financiers often offer faster and more flexible solutions than traditional banks, and entrepreneurs are increasingly aware that there are opportunities for alternative financing.
Non-bank financing on the rise
Research by Stichting MKB Financiering shows that total non-bank loans will have grown by 27% by 2023. The growth is particularly striking for loans under €250,000: here the share of non-bank loans now exceeds that of banks.
The role of the government
The government tries to play an active role in encouraging SME financing. It does this through guarantee schemes, encouraging alternative financing and improving information provision. The latter in particular is currently lacking. Therefore, a central platform with information on financing opportunities is being developed. We have no idea yet when this platform will become operational.
Trends and developments
Besides the growth of alternative financing, other important trends can be seen in the SME business finance market. More and more financiers are focusing on sustainable projects and businesses. The financing process is becoming increasingly digitised, with online platforms and quick credit assessments. In addition, financiers are showing a growing interest in innovative SMEs with growth potential.
The expectations for the Dutch SME finance market in 2025 build on the trends we see in 2024. Here are three key predictions:
Further growth of alternative finance
- Share of non-bank loans rises: the share of non-bank loans in total SME financing is expected to continue to grow.
- More diversification: entrepreneurs will use an even wider range of alternative forms of financing, such as crowdfunding, private debt, venture capital and fintech solutions.
- Competitive pressure: competition between banks and alternative financiers will increase, which may lead to more favourable terms for entrepreneurs.
Technological developments
- Digitisation accelerates: the financing process will continue to digitise, with more online platforms, automated credit assessments and faster processes.
- Data-driven decision-making: financiers will increasingly use data analytics to assess credit risks and make financing decisions.
- Emergence of embedded finance: financial services will increasingly be integrated into other platforms and processes, making it easier for entrepreneurs to access finance.
Sustainability and impact
- Growing demand for sustainable financing: demand for sustainable financing solutions will increase, both from entrepreneurs and financiers.
- ESG criteria more important: financiers will increasingly pay attention to Environmental, Social and Governance (ESG) criteria when assessing funding applications.
- Impact investing on the rise: In addition to financial returns, financiers will increasingly look at the social impact of their investments.
Tips
To make the best choice, compare different funding options and choose the one that best suits your organisation and needs. A thorough and convincing business plan is essential to convince financiers of your plans. To obtain financing, accurate and up-to-date records are a must. Xolv is of course ready to spar with you about the possibilities!
