State guarantee still allows credit

Published on 07/11/2023

There is a scheme that allows a company to increase collateral, giving financiers more security in the loan underwriting process. The Dutch government guarantees the BMKB loans provided (also known as state guarantees). The bank can subordinate half of the loan application to a guarantor loan, making the state a guarantor for 90%. What its purpose is? To encourage Dutch SMEs. But alternative lenders are also allowed to provide state-guaranteed loans. And that definitely brings advantages for entrepreneurs. 

This is because these alternative financiers are innovative and better able to think with entrepreneurs. They are used to providing loans with little collateral and their assessment process is much shorter than that of major banks. So they work more flexibly and faster, which really helps entrepreneurs!

Solid market knowledge

It is important to know exactly what the lenders' terms and conditions are. And where the negotiation opportunities on terms and conditions lie. Writing the application also requires knowledge, especially if you want to be presented with an offer quickly. So you need a solid knowledge of the market and alternative lenders. 

The experts at Xolv will be happy to talk to you about the possibilities!

Want to know more? Get in touch.