Business finance market continues to pick up

The corporate finance market in the Netherlands continues to grow steadily. More and more companies are submitting a credit application while the credit conditions have become much more flexible. Moreover, European money is released for SMEs through microfinance.

Demand for business loans continues to grow
Demand for business loans continues to grow

In the third quarter of this year, the demand for business financing has again increased significantly. It is mainly the low interest rate that ensures that companies are increasingly inclined to take out a loan. German, Italian and Dutch companies have indicated that they would like to take out a loan to finance a large investment. This is evident from the quarterly survey conducted by the European Central Bank. Only French and Spanish companies appear not to follow the trend.

A remarkable fact is that not only has the number of credit applications increased, but the number of rejected files is also considerably less this quarter compared to the previous one. More than likely, this has little to do with the solvency of the companies as such, but with the fact that the credit conditions for a business loan have been considerably relaxed. This mutual competition is once again increasing considerably for the first time in a long time and that is reflected in the conditions. In four percent of cases, credit conditions were made considerably more lenient by European banks in the third quarter compared to the previous quarters.

Taking out micro credit becomes easier
Not only will obtaining traditional corporate financing become easier, the European Investment Fund has also indicated that it will invest in SMEs through six microfinance organizations. In particular, there will be a guarantee scheme that aims to finance 20,000 medium-sized and small companies on European soil. In total, an amount of US $ 237 million would be provided for this.

The above should ensure that it is easier for small, starting entrepreneurs to borrow money. They often do not get the financial resources together, so that many good ideas can never be put into practice. However, the EIF is convinced that this should be a lot easier with a European guarantee of 75 percent to 25,000 US dollars.

Published November 4, 2015 at 2:07 PM by the editors .

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