1 00:00:09,240 --> 00:00:11,840 If you're a foreign entrepreneur in the Netherlands 2 00:00:11,960 --> 00:00:14,480 you can benefit from a variety of financing options 3 00:00:14,600 --> 00:00:18,080 on offer from the Dutch government banks and private agencies. 4 00:00:18,200 --> 00:00:19,640 In this webinar 5 00:00:19,760 --> 00:00:23,640 representatives of several organisations will tell you about these options. 6 00:00:23,760 --> 00:00:27,080 And experienced entrepreneurs will share their experiences. 7 00:00:27,200 --> 00:00:31,360 Before we start our conversation, I'd like to point out to our viewers 8 00:00:31,480 --> 00:00:34,720 that a team of specialists is available to answer your questions. 9 00:00:34,840 --> 00:00:39,120 So, do you have a question, then use the live chat option underneath the video screen 10 00:00:39,240 --> 00:00:42,120 and one of our specialists will get in touch with you. 11 00:00:42,240 --> 00:00:46,560 This webinar tells you all there is to know about the Dutch financing landscape. 12 00:00:46,680 --> 00:00:48,880 How do you prepare yourself to get funding? 13 00:00:49,000 --> 00:00:53,680 Which forms of funding can you find, and how do you sell your plan to your funders? 14 00:00:53,800 --> 00:00:57,400 These are the topics we'll be discussing in the next 60 minutes 15 00:00:57,520 --> 00:01:00,320 but first, let's take a look at this video. 16 00:01:00,440 --> 00:01:04,360 The royal kingdom of the Netherlands is strategically located 17 00:01:04,480 --> 00:01:09,760 at the North Sea coast between the United Kingdom and the vast mainland of Europe. 18 00:01:09,880 --> 00:01:12,760 The country offers you a friendly investment climate 19 00:01:12,880 --> 00:01:14,760 a highly developed infrastructure 20 00:01:14,880 --> 00:01:20,400 and a population with an average spending income of over 30,000 euros a year. 21 00:01:20,520 --> 00:01:23,280 Every year, more businesses from all over the world 22 00:01:23,400 --> 00:01:28,400 start their business in the Netherlands. You are certainly not the only one. 23 00:01:28,520 --> 00:01:30,480 The Dutch government welcomes this development. 24 00:01:30,600 --> 00:01:35,000 However, preparation is the key to success. 25 00:01:35,120 --> 00:01:39,400 We'll start this webinar with an introduction of the Dutch financing landscape. 26 00:01:39,520 --> 00:01:43,160 I'm joined by René Kamphuis from the Netherlands Enterprise Agency. 27 00:01:43,280 --> 00:01:46,280 Geert Gladdines from the Dutch Banking Association 28 00:01:46,400 --> 00:01:49,080 and Gerhard Nagel, co-owner Ter Marsch & Co. 29 00:01:49,200 --> 00:01:51,280 Good to have you all here in the studio. 30 00:01:52,400 --> 00:01:55,040 Well, to start off with you René 31 00:01:55,160 --> 00:02:00,480 you're the coordinator for small and medium enterprises at the Netherlands Enterprise Agency. 32 00:02:00,600 --> 00:02:05,920 Could you say that entrepreneurs from other countries are welcome here in the Netherlands? 33 00:02:06,040 --> 00:02:10,640 They're very welcome in the Netherlands. To give an example 34 00:02:10,760 --> 00:02:17,680 we provide services to 350 foreign companies a year. 35 00:02:17,800 --> 00:02:25,120 That brings forth 10,000 extra jobs in the Netherlands. 36 00:02:25,240 --> 00:02:29,800 And also, those companies invest for a total 37 00:02:29,920 --> 00:02:36,240 of around 2.5 billion euros extra upon the Dutch economy. 38 00:02:36,360 --> 00:02:40,160 So they're very welcome. -So I can hear, yes. 39 00:02:40,280 --> 00:02:43,160 Which steps does an entrepreneur have to take 40 00:02:43,280 --> 00:02:47,000 when he wants to apply for finance in the Netherlands? 41 00:02:47,120 --> 00:02:51,680 First of all, you must have a visa and a residence permit. 42 00:02:51,800 --> 00:02:55,880 And later on in the process, you have to register your company 43 00:02:56,000 --> 00:03:01,240 at the Netherlands Chamber of Commerce and you have to finance your business. 44 00:03:01,360 --> 00:03:03,160 That is, of course, very important. 45 00:03:03,280 --> 00:03:09,440 So that's mostly the time, the first step you take to get your finance in order. 46 00:03:09,560 --> 00:03:11,960 Later on, at the Chamber of Commerce 47 00:03:12,080 --> 00:03:14,640 you can register your company in a few weeks. 48 00:03:16,560 --> 00:03:19,480 So, if you're not from a European economic area 49 00:03:19,600 --> 00:03:23,080 and need advice and information about a visa or residence permit 50 00:03:23,200 --> 00:03:27,000 please watch the on-demand webinar Starting a Business in the Netherlands 51 00:03:27,120 --> 00:03:30,680 on Business.gov.nl/webinars. 52 00:03:32,280 --> 00:03:37,280 So, René, what does an entrepreneur have to know when he wants to apply for funding? 53 00:03:37,400 --> 00:03:41,200 First of all, they have to prepare themselves very good. 54 00:03:41,320 --> 00:03:46,280 The financing is never on your blue eyes 55 00:03:46,400 --> 00:03:51,080 or just a talk with an employee at a financial institute. 56 00:03:51,200 --> 00:03:56,200 You have to really prepare yourself and come up with good plans 57 00:03:56,320 --> 00:04:03,520 good figures and well, you have to really have your details in place. 58 00:04:03,640 --> 00:04:06,640 We'll talk a bit more about that later. 59 00:04:06,760 --> 00:04:09,760 First, I'd like to welcome Geert Gladdines 60 00:04:09,880 --> 00:04:13,080 who is a policy advisor with the Dutch Banking Association. 61 00:04:13,200 --> 00:04:14,920 Welcome, Geert. -Thank you. 62 00:04:15,040 --> 00:04:18,880 Can you give our viewers us a short description of the Dutch financing landscape? 63 00:04:19,000 --> 00:04:24,600 Yes well, the vast majority of businesses will start their orientation process with the bank. 64 00:04:24,720 --> 00:04:29,000 So that's the most straightforward, regular type of financing 65 00:04:29,120 --> 00:04:34,120 and they'll either go for a normal loan or an overdraft facility. 66 00:04:34,240 --> 00:04:38,480 But the options are widening. So business can use leasing, for instance 67 00:04:38,600 --> 00:04:41,320 where they use a machine or vehicle 68 00:04:41,440 --> 00:04:46,080 that stays in ownership of the leasing party. 69 00:04:46,200 --> 00:04:52,520 But also factoring where you can sell your invoice in order to free up working capital. 70 00:04:52,640 --> 00:04:58,920 Or for instance, Qredits which provides microfinance with a form of coaching as well. 71 00:04:59,040 --> 00:05:02,840 For the more risk type oriented forms of capital 72 00:05:02,960 --> 00:05:06,720 you can go to business angels, private equity, venture capital 73 00:05:06,840 --> 00:05:09,600 which is also available in the Netherlands. 74 00:05:09,720 --> 00:05:12,040 So, lots of options. -Yes, for sure. 75 00:05:12,160 --> 00:05:15,640 It involves lots of paperwork, I presume. -Always. 76 00:05:15,760 --> 00:05:20,560 But it's in the benefit of the investor, the bank and the entrepreneur as well. 77 00:05:20,680 --> 00:05:26,240 If you provide a good plan upfront, you will make sure you have the right type of financing 78 00:05:26,360 --> 00:05:31,160 for the kind of business that you're running, which is the most important. 79 00:05:31,280 --> 00:05:34,360 Well, I'd also like to welcome Gerhard Nagel. 80 00:05:34,480 --> 00:05:38,400 You started a burger bar in Rotterdam in 2013. 81 00:05:38,520 --> 00:05:42,360 And now you run four of them. So, I'd like to start at the beginning. 82 00:05:42,480 --> 00:05:47,640 How did you end up here in the Netherlands? -I was contacted by my Dutch friend. 83 00:05:47,760 --> 00:05:54,880 In 2013, he had met a young, high-potential with an idea to start up a restaurant. 84 00:05:55,000 --> 00:06:01,160 And the team needed some funding, the team needed financial knowhow. 85 00:06:01,280 --> 00:06:03,280 And so I came onboard. 86 00:06:03,400 --> 00:06:07,520 And what was your idea of the Dutch financing landscape before you came here? 87 00:06:07,640 --> 00:06:09,840 I didn't really know about it. 88 00:06:09,960 --> 00:06:15,720 But banks, financing institutions are pretty much the same everywhere around the world. 89 00:06:15,840 --> 00:06:20,520 Is it really exactly the same in, for instance, your home country Austria? 90 00:06:20,640 --> 00:06:23,320 Principally yes, it's all about risk. 91 00:06:23,440 --> 00:06:27,200 No financing institution, no bank wants to lose their money. 92 00:06:27,320 --> 00:06:31,320 So they'll go through a diligent process with you 93 00:06:31,440 --> 00:06:35,240 to make sure they understand the business plan and they find it viable. 94 00:06:35,360 --> 00:06:38,320 What's the difference with Austria? 95 00:06:38,440 --> 00:06:42,880 The ease of starting up a business in the Netherlands 96 00:06:43,000 --> 00:06:49,120 is probably better and faster than in many other countries. 97 00:06:50,520 --> 00:06:52,760 That's good, a good reason to be here. 98 00:06:52,880 --> 00:06:57,120 That’s a very good reason to be here. -You started with three Dutch partners. 99 00:06:57,240 --> 00:07:01,280 Did that help to get funding? -I think it helps. 100 00:07:01,400 --> 00:07:05,720 We talked about it before: What would it be like for Austrians applying? 101 00:07:05,840 --> 00:07:12,600 We'd run a higher risk of failing with four people not knowing the country. 102 00:07:12,720 --> 00:07:17,360 You need local knowhow in running a restaurant, you need to know the market. 103 00:07:17,480 --> 00:07:20,360 It's good to speak the language. -Yes. 104 00:07:20,480 --> 00:07:24,440 And did you apply while you were in the Netherlands or were you abroad? 105 00:07:24,560 --> 00:07:26,480 I was at the time still abroad. 106 00:07:26,600 --> 00:07:30,960 It was just a business idea at the inception phase. 107 00:07:31,080 --> 00:07:36,280 I was working with our commercial partner on writing a business plan 108 00:07:36,400 --> 00:07:40,880 to ask funds from a local bank. 109 00:07:41,000 --> 00:07:46,040 René, do you have to be present in the Netherlands to apply for funding? 110 00:07:46,160 --> 00:07:49,040 Or is it possible to apply online, for example? 111 00:07:49,160 --> 00:07:55,080 Yes, at the government instruments you can apply online. 112 00:07:55,200 --> 00:07:58,960 Most of the instruments are applied online. 113 00:07:59,080 --> 00:08:02,200 So you don't have to be in the Netherlands before you apply. 114 00:08:02,320 --> 00:08:07,440 But later on in the phase of your application 115 00:08:07,560 --> 00:08:14,000 you'll have to talk to someone in life being there. 116 00:08:14,120 --> 00:08:17,840 So you have to be in the Netherlands to finish your application. 117 00:08:17,960 --> 00:08:20,240 They want to meet you face-to-face. -Yes. 118 00:08:20,360 --> 00:08:25,840 Does this apply to all types of financing? -Yes. Actually, it does. 119 00:08:25,960 --> 00:08:32,760 There isn't an instrument of financial support that you can apply online 120 00:08:32,880 --> 00:08:38,960 and not seeing anybody and start your business. That's not possible. 121 00:08:39,080 --> 00:08:41,920 It's still personal. -Yes, it's personal. 122 00:08:42,040 --> 00:08:48,080 Geert, the economy is doing well, but financing is still a bit of an issue. 123 00:08:48,200 --> 00:08:51,360 What's important for Dutch banks? 124 00:08:51,480 --> 00:08:57,400 In the credit application process and the risk analysis the bank is going to make 125 00:08:57,520 --> 00:09:01,040 they'll look at whether an entrepreneur will make money. 126 00:09:01,160 --> 00:09:05,920 If you make money, you can pay back your loan and interest payments. 127 00:09:06,040 --> 00:09:11,640 And it's very important for the bank to make sure that you have cashflow 128 00:09:11,760 --> 00:09:15,560 and also that you're able to absorb losses. 129 00:09:15,680 --> 00:09:20,720 So you bring in your own equity, your own capital and that you can provide guarantees. 130 00:09:20,840 --> 00:09:23,840 If, in the end, something wouldn't work out 131 00:09:23,960 --> 00:09:28,160 that you will be able to pay back the bank with collateral. 132 00:09:28,280 --> 00:09:31,520 And Gerhard, you also invested in yourself, didn't you? 133 00:09:31,640 --> 00:09:35,920 I can absolutely confirm what Geert is saying. The bank is managing risk. 134 00:09:36,040 --> 00:09:39,640 So they want to see you bring on some own equity 135 00:09:39,760 --> 00:09:43,480 because if you don't believe in your own plan, why would they? 136 00:09:45,240 --> 00:09:49,800 It's very important to work on your business plan 137 00:09:49,920 --> 00:09:53,160 not only on the numbers, but on the supporting story. 138 00:09:53,280 --> 00:09:54,920 The numbers and the story. 139 00:09:55,040 --> 00:09:58,720 They have to build a unity and support each other. 140 00:09:58,840 --> 00:10:04,520 But was it, well, did the bank actually ask you to invest yourself? 141 00:10:04,640 --> 00:10:08,280 Or was it your own idea? -It's a prerequisite. 142 00:10:08,400 --> 00:10:16,080 The bank is demanding 20 to 30% of equity otherwise they wouldn't fund you. 143 00:10:16,200 --> 00:10:20,480 Okay, and how much did you invest? 144 00:10:20,600 --> 00:10:27,360 For our first, small Ter Marsch burger bar we needed 200,000 euro 145 00:10:27,480 --> 00:10:33,600 and we put our own equity in which was nearly 80,000 at the time. 146 00:10:35,360 --> 00:10:38,440 What are the other demands of the banks? 147 00:10:39,440 --> 00:10:46,520 They want to see some private, personal guarantees. 148 00:10:46,640 --> 00:10:53,120 So, you also have to sign with your private will on to that loan. 149 00:10:53,960 --> 00:10:56,280 Are you responsible as a private person? 150 00:10:56,400 --> 00:10:59,680 Yes. -So, it's a little bit of a risk. 151 00:10:59,800 --> 00:11:04,760 It's definitely a risk and that's why it's so important to do the homework 152 00:11:04,880 --> 00:11:08,280 when you prepare the business plan. It's not an exercise for the bank. 153 00:11:08,400 --> 00:11:13,560 It's an exercise to check if it's possible to make a profit. 154 00:11:13,680 --> 00:11:17,640 Are cashflows coming out from the business proposal? 155 00:11:17,760 --> 00:11:21,720 And Geert, are there types of businesses 156 00:11:21,840 --> 00:11:24,880 that are more likely to get funding than others? 157 00:11:25,000 --> 00:11:27,440 And well, maybe even the other way round. 158 00:11:27,560 --> 00:11:31,800 Are there types of businesses that are less likely to succeed in getting money? 159 00:11:31,920 --> 00:11:34,040 As a general rule, no. 160 00:11:34,160 --> 00:11:38,400 Any business that comes to the bank will get the same treatment, like: 161 00:11:38,520 --> 00:11:40,840 Will you be able to pay back the loan? 162 00:11:40,960 --> 00:11:43,080 But there are types of... 163 00:11:43,200 --> 00:11:47,520 It depends also on competition, on which kind of market are you in. 164 00:11:47,640 --> 00:11:50,160 Is it business to consumer or B2B? 165 00:11:50,280 --> 00:11:54,800 And there types of business, for instance, like clothing, construction 166 00:11:54,920 --> 00:11:59,240 and retail, tailored directly also to consumers 167 00:11:59,360 --> 00:12:04,840 that might be more susceptible to economic downturns making it more risky. 168 00:12:04,960 --> 00:12:10,280 So that are examples where the bank will have different questions about guarantees 169 00:12:10,400 --> 00:12:15,920 then, for instance, machinery construction or production companies. 170 00:12:16,040 --> 00:12:18,880 It's safe to conclude that the higher the risk 171 00:12:19,000 --> 00:12:21,360 the more of your own money you have to invest. 172 00:12:21,480 --> 00:12:23,480 Usually yes. -Okay. 173 00:12:23,600 --> 00:12:25,160 René, you've already told us 174 00:12:25,280 --> 00:12:28,600 that international entrepreneurs are more than welcome here. 175 00:12:28,720 --> 00:12:33,080 Is there a way that the Dutch government actually contributes 176 00:12:33,200 --> 00:12:37,400 to encourage the Dutch financing landscape? -Yes, certainly. 177 00:12:37,520 --> 00:12:41,360 For instance, we have SME guarantee schemes. 178 00:12:41,480 --> 00:12:48,280 We have all kinds of subsidies, we've risk capital available for start-ups. 179 00:12:48,400 --> 00:12:51,680 We also do a lot of advisory work. 180 00:12:51,800 --> 00:12:57,240 I advise about 3,000 companies a year with my unit. 181 00:12:57,360 --> 00:13:01,000 We work together a lot with the Chamber of Commerce 182 00:13:01,120 --> 00:13:07,400 and we do a lot of activities together to reach out to the start-ups. 183 00:13:07,520 --> 00:13:11,640 And the new companies in the Netherlands so we do a lot together. 184 00:13:11,760 --> 00:13:15,080 It seems so. And do entrepreneurs actually make use of this? 185 00:13:15,200 --> 00:13:20,120 Yes, they do and we try to reach out ourselves as well. 186 00:13:20,240 --> 00:13:23,160 We are visible on our website 187 00:13:23,280 --> 00:13:27,040 but we also work together with the Chamber of Commerce 188 00:13:27,160 --> 00:13:29,680 with business.gov.nl 189 00:13:30,720 --> 00:13:35,640 and we try to attend to as much as events as possible. 190 00:13:35,760 --> 00:13:42,400 We're also available on a lot of places where entrepreneurs come together 191 00:13:42,520 --> 00:13:47,120 like Incubators or special buildings for starting companies. 192 00:13:47,240 --> 00:13:51,840 So, we have a lot of interaction and that's basically our main job. 193 00:13:51,960 --> 00:13:57,080 Good, well, to recap: entrepreneurs are more than welcome in the Netherlands. 194 00:13:57,200 --> 00:13:59,520 There is a wide variety of funding available 195 00:13:59,640 --> 00:14:03,200 if you come very well-prepared. A simple handshake won't do. 196 00:14:03,320 --> 00:14:07,680 Before you apply for funding make sure you have a valid residence and working permit. 197 00:14:07,800 --> 00:14:12,000 I see we have a viewer's question and it's for you Gerhard. 198 00:14:12,120 --> 00:14:15,160 Is it necessary to know people in the Netherlands 199 00:14:15,280 --> 00:14:18,240 when you want to apply for a loan? -Yes. 200 00:14:18,360 --> 00:14:21,840 I think it's good, it's helpful. 201 00:14:21,960 --> 00:14:27,000 If you have local people who know the language, who know the ways 202 00:14:27,120 --> 00:14:30,920 it's absolutely supportive in your plans. -Good to know. 203 00:14:31,040 --> 00:14:35,960 Well, I'd like to thank all three of you: René, Gerhard, Geert 204 00:14:36,080 --> 00:14:39,880 for all your experience and expertise, thank you for sharing. 205 00:14:40,000 --> 00:14:44,680 If you want more information, please take a look on business.gov.nl 206 00:14:44,800 --> 00:14:47,160 or ask your question to our chat team.