Companies are more likely to borrow money privately

The private loan, many people may never have heard about it before, while others are happy to use it again. Private borrowing seems to be making a comeback not only among consumers, but also among companies.

Private loan more popular again
Private loan more popular again

The way in which a company can borrow money privately is quite different compared to private individuals. Companies can borrow money privately (and therefore outside a bank) by appealing to the possibilities of insurers and pension funds. Various large companies, including Breskens van Vroon in Zeeland, but also real estate company Vastned and the well-known dairy cooperative Friesland Campina have indicated that they will start looking for their financial resources on the private loan market from now on.

Dried up market
Until the beginning of the last century, companies as just mentioned could choose from a wide range of private credit options on the Dutch market. Today, however, the supply is very limited, but it can be concluded that several companies again see the greatest benefit in this.

"In earlier times, the market for private credits between insurers and pension funds and companies in particular was very extensive. It was then more common to borrow money in this way for large investments than to go to a bank. After the introduction of the US dollar came this changed and the market dried up, "said Rabo banker Evertjan Manuels.

70 million US dollar credit with Delta Lloyd
Breskens van Vroon, the company mentioned earlier in this article, recently opted to make an investment that pays off for the benefit. It concerned an investment of US $ 70 million. The amount needed to carry out this investment was borrowed from Delta Lloyd.

Private loan for private individuals
Borrowing money privately for companies is not only becoming more popular again, but the private loan is also making a comeback among consumers. This can be determined despite the low interest rates that are charged. With a private loan for consumers, it is also decided not to borrow from a bank, but to rely on friends or family. A specific amount of money can then be obtained by means of a private credit agreement, whether or not with payment of a specific interest .

Published October 1, 2015 at 1:56 PM by the editors .

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