If you're a foreign entrepreneur in the Netherlands
you can benefit from a variety of financing options
on offer from the Dutch government banks and private agencies.
In this webinar
representatives of several organisations will tell you about these options.
And experienced entrepreneurs will share their experiences.
Before we start our conversation, I'd like to point out to our viewers
that a team of specialists is available to answer your questions.
So, do you have a question, then use the live chat option underneath the video screen
and one of our specialists will get in touch with you.
This webinar tells you all there is to know about the Dutch financing landscape.
How do you prepare yourself to get funding?
Which forms of funding can you find, and how do you sell your plan to your funders?
These are the topics we'll be discussing in the next 60 minutes
but first, let's take a look at this video.
The royal kingdom of the Netherlands is strategically located
at the North Sea coast between the United Kingdom and the vast mainland of Europe.
The country offers you a friendly investment climate
a highly developed infrastructure
and a population with an average spending income of over 30,000 euros a year.
Every year, more businesses from all over the world
start their business in the Netherlands. You are certainly not the only one.
The Dutch government welcomes this development.
However, preparation is the key to success.
We'll start this webinar with an introduction of the Dutch financing landscape.
I'm joined by René Kamphuis from the Netherlands Enterprise Agency.
Geert Gladdines from the Dutch Banking Association
and Gerhard Nagel, co-owner Ter Marsch & Co.
Good to have you all here in the studio.
Well, to start off with you René
you're the coordinator for small and medium enterprises at the Netherlands Enterprise Agency.
Could you say that entrepreneurs from other countries are welcome here in the Netherlands?
They're very welcome in the Netherlands. To give an example
we provide services to 350 foreign companies a year.
That brings forth 10,000 extra jobs in the Netherlands.
And also, those companies invest for a total
of around 2.5 billion euros extra upon the Dutch economy.
So they're very welcome. -So I can hear, yes.
Which steps does an entrepreneur have to take
when he wants to apply for finance in the Netherlands?
First of all, you must have a visa and a residence permit.
And later on in the process, you have to register your company
at the Netherlands Chamber of Commerce and you have to finance your business.
That is, of course, very important.
So that's mostly the time, the first step you take to get your finance in order.
Later on, at the Chamber of Commerce
you can register your company in a few weeks.
So, if you're not from a European economic area
and need advice and information about a visa or residence permit
please watch the on-demand webinar Starting a Business in the Netherlands
on Business.gov.nl/webinars.
So, René, what does an entrepreneur have to know when he wants to apply for funding?
First of all, they have to prepare themselves very good.
The financing is never on your blue eyes
or just a talk with an employee at a financial institute.
You have to really prepare yourself and come up with good plans
good figures and well, you have to really have your details in place.
We'll talk a bit more about that later.
First, I'd like to welcome Geert Gladdines
who is a policy advisor with the Dutch Banking Association.
Welcome, Geert. -Thank you.
Can you give our viewers us a short description of the Dutch financing landscape?
Yes well, the vast majority of businesses will start their orientation process with the bank.
So that's the most straightforward, regular type of financing
and they'll either go for a normal loan or an overdraft facility.
But the options are widening. So business can use leasing, for instance
where they use a machine or vehicle
that stays in ownership of the leasing party.
But also factoring where you can sell your invoice in order to free up working capital.
Or for instance, Qredits which provides microfinance with a form of coaching as well.
For the more risk type oriented forms of capital
you can go to business angels, private equity, venture capital
which is also available in the Netherlands.
So, lots of options. -Yes, for sure.
It involves lots of paperwork, I presume. -Always.
But it's in the benefit of the investor, the bank and the entrepreneur as well.
If you provide a good plan upfront, you will make sure you have the right type of financing
for the kind of business that you're running, which is the most important.
Well, I'd also like to welcome Gerhard Nagel.
You started a burger bar in Rotterdam in 2013.
And now you run four of them. So, I'd like to start at the beginning.
How did you end up here in the Netherlands? -I was contacted by my Dutch friend.
In 2013, he had met a young, high-potential with an idea to start up a restaurant.
And the team needed some funding, the team needed financial knowhow.
And so I came onboard.
And what was your idea of the Dutch financing landscape before you came here?
I didn't really know about it.
But banks, financing institutions are pretty much the same everywhere around the world.
Is it really exactly the same in, for instance, your home country Austria?
Principally yes, it's all about risk.
No financing institution, no bank wants to lose their money.
So they'll go through a diligent process with you
to make sure they understand the business plan and they find it viable.
What's the difference with Austria?
The ease of starting up a business in the Netherlands
is probably better and faster than in many other countries.
That's good, a good reason to be here.
That’s a very good reason to be here. -You started with three Dutch partners.
Did that help to get funding? -I think it helps.
We talked about it before: What would it be like for Austrians applying?
We'd run a higher risk of failing with four people not knowing the country.
You need local knowhow in running a restaurant, you need to know the market.
It's good to speak the language. -Yes.
And did you apply while you were in the Netherlands or were you abroad?
I was at the time still abroad.
It was just a business idea at the inception phase.
I was working with our commercial partner on writing a business plan
to ask funds from a local bank.
René, do you have to be present in the Netherlands to apply for funding?
Or is it possible to apply online, for example?
Yes, at the government instruments you can apply online.
Most of the instruments are applied online.
So you don't have to be in the Netherlands before you apply.
But later on in the phase of your application
you'll have to talk to someone in life being there.
So you have to be in the Netherlands to finish your application.
They want to meet you face-to-face. -Yes.
Does this apply to all types of financing? -Yes. Actually, it does.
There isn't an instrument of financial support that you can apply online
and not seeing anybody and start your business. That's not possible.
It's still personal. -Yes, it's personal.
Geert, the economy is doing well, but financing is still a bit of an issue.
What's important for Dutch banks?
In the credit application process and the risk analysis the bank is going to make
they'll look at whether an entrepreneur will make money.
If you make money, you can pay back your loan and interest payments.
And it's very important for the bank to make sure that you have cashflow
and also that you're able to absorb losses.
So you bring in your own equity, your own capital and that you can provide guarantees.
If, in the end, something wouldn't work out
that you will be able to pay back the bank with collateral.
And Gerhard, you also invested in yourself, didn't you?
I can absolutely confirm what Geert is saying. The bank is managing risk.
So they want to see you bring on some own equity
because if you don't believe in your own plan, why would they?
It's very important to work on your business plan
not only on the numbers, but on the supporting story.
The numbers and the story.
They have to build a unity and support each other.
But was it, well, did the bank actually ask you to invest yourself?
Or was it your own idea? -It's a prerequisite.
The bank is demanding 20 to 30% of equity otherwise they wouldn't fund you.
Okay, and how much did you invest?
For our first, small Ter Marsch burger bar we needed 200,000 euro
and we put our own equity in which was nearly 80,000 at the time.
What are the other demands of the banks?
They want to see some private, personal guarantees.
So, you also have to sign with your private will on to that loan.
Are you responsible as a private person?
Yes. -So, it's a little bit of a risk.
It's definitely a risk and that's why it's so important to do the homework
when you prepare the business plan. It's not an exercise for the bank.
It's an exercise to check if it's possible to make a profit.
Are cashflows coming out from the business proposal?
And Geert, are there types of businesses
that are more likely to get funding than others?
And well, maybe even the other way round.
Are there types of businesses that are less likely to succeed in getting money?
As a general rule, no.
Any business that comes to the bank will get the same treatment, like:
Will you be able to pay back the loan?
But there are types of...
It depends also on competition, on which kind of market are you in.
Is it business to consumer or B2B?
And there types of business, for instance, like clothing, construction
and retail, tailored directly also to consumers
that might be more susceptible to economic downturns making it more risky.
So that are examples where the bank will have different questions about guarantees
then, for instance, machinery construction or production companies.
It's safe to conclude that the higher the risk
the more of your own money you have to invest.
Usually yes. -Okay.
René, you've already told us
that international entrepreneurs are more than welcome here.
Is there a way that the Dutch government actually contributes
to encourage the Dutch financing landscape? -Yes, certainly.
For instance, we have SME guarantee schemes.
We have all kinds of subsidies, we've risk capital available for start-ups.
We also do a lot of advisory work.
I advise about 3,000 companies a year with my unit.
We work together a lot with the Chamber of Commerce
and we do a lot of activities together to reach out to the start-ups.
And the new companies in the Netherlands so we do a lot together.
It seems so. And do entrepreneurs actually make use of this?
Yes, they do and we try to reach out ourselves as well.
We are visible on our website
but we also work together with the Chamber of Commerce
with business.gov.nl
and we try to attend to as much as events as possible.
We're also available on a lot of places where entrepreneurs come together
like Incubators or special buildings for starting companies.
So, we have a lot of interaction and that's basically our main job.
Good, well, to recap: entrepreneurs are more than welcome in the Netherlands.
There is a wide variety of funding available
if you come very well-prepared. A simple handshake won't do.
Before you apply for funding make sure you have a valid residence and working permit.
I see we have a viewer's question and it's for you Gerhard.
Is it necessary to know people in the Netherlands
when you want to apply for a loan? -Yes.
I think it's good, it's helpful.
If you have local people who know the language, who know the ways
it's absolutely supportive in your plans. -Good to know.
Well, I'd like to thank all three of you: René, Gerhard, Geert
for all your experience and expertise, thank you for sharing.
If you want more information, please take a look on business.gov.nl
or ask your question to our chat team.
The most important condition for getting funding for your business is preparation.
An essential part in this is writing a professional business plan.
This plan has to meet requirements. I'll talk about these requirements
with Angèle Margré, business advisor at Netherlands Chamber of Commerce.
Geert Gladdines, policy advisor corporate service
at the Dutch Banking Association.
And Gerhard Nagel, co-owner Ter Marsch & Co.
Welcome, good that you're here.
Angèle, you've seen a lot of business plans in your career.
Can you tell us which components should be in a business plan?
It's a bit of a triangle. You start with your personal belongings
and your personal skills being an entrepreneur.
Who are you as an entrepreneur? What are your skills, education and experience?
And why do you want to start a business. The second chapter is marketing.
The marketing strategy. Why do you want to start this kind of business?
With these activities. Who are your clients?
What are their needs?
And why are you starting this marketing strategy and your purpose?
And the third part, it's the most difficult part, is the financial plan.
And that required your revenues, your investments, your financial plan
your loans and your return on investments.
In order to improve your understanding of the importance of a business plan
please watch the following video.
You have a brilliant idea, a gap in the market, an amazing product.
An indispensable app. You're enthusiastic about this.
You see opportunities, but can you get it done?
You are motivated and just want to go, go, go.
Stop, that's not smart. Your idea deserves better.
Would you just start pouring concrete if you want to build a house?
Of course not. You're the architect of your own success.
And just like an architect, you build better, easier and faster with a blueprint.
And do you know how you can be successful in business?
By having a business plan as your blueprint.
It provides insight in the feasibility of your idea.
And at the same time, it's a step-by-step plan.
It gives you control during hard times.
It's an exploration of the future during the building process.
It forces you to describe the foundation
and which walls are going to support the success.
It teaches you what is necessary to shape your visionary idea.
In your business plan, you'll list your own plans.
You'll answer questions like: What do I want to do exactly?
Where am I going to establish myself? Which legal form am I going to choose?
Is there a market for my product? How do I find customers?
How much money do I need to get my plans off the ground?
Often the design will change a bit during this process.
You discover what is and isn't possible.
By asking feedback from friends, family and experts
you'll discover construction faults and how to prevent them.
In the end, you know how beautiful your success can be
and how you can achieve that with as much purpose as passion.
And as much motivation as inspiration.
The business plan, the foundations of business success and financing your ideas.
Angèle, how do I fill out the financial part
knowing that entrepreneurs find this the most difficult part of a business plan?
Most entrepreneurs find it the most difficult part.
I think it's the most boring part for the financial plan.
At first, you make four budgets. The first one is the investment budget.
And that's all the stuff and articles you need to start up your company.
Put it on the left side of your sheet, it'll be your dream.
So, it's going to be the inventory, the machinery, the transport.
All the stuff you need to start your company.
On the right side is going to be your worst nightmare.
So, you ask yourself: Where do I get the money from?
There are several possibilities. First is bringing in your own money.
Like your own savings or subordinated loan from family or friends.
And the other possibility to get a loan or credit from outside capital
like a bank or crowdfunding, but also an informal investor.
So those two financial budgets are your opening sheet
your opening balance so they must be equal.
The third one is the budget most entrepreneurs forget to make
because it's your private budget. -You have to put that in too?
Yes, because how much money do you need to earn for your own living?
For your own fixed costs or expenses, yes?
So that's a difficult one. The fourth one is the operating budget.
That's the most budget the banks like
because that's the budget how you, for instance, determine your hourly rate
your purchase and that's also your revenues.
So the bank will know how much will you earn
to pay us back and to get your return on investment.
So, and you make three. For the one, is the realistic one.
The second one of for the future and the third one is to grow with your company.
Okay. Gerhard, when you started your business
did you know how to make a business plan?
I did and I like Angèle saying the number part is the most boring part.
I'm a finance professional, I like the numbers part.
But that's why I wrote my business plan with my commercial partner.
He also finds it more boring.
So it's very important that the commercial story is in line
tangoes with the numbers. It should be one story.
So, don't write it on your own. Team up.
And make it perfect towards the bank. -I like that, a tango.
It makes it less boring, at least, yes.
So, what are the most components of a business plan?
The most important components.
Well, if I might start? -Yes.
It starts with the idea, with a passionate idea.
You translate it into the first numbers.
In our case, in the Ter Marsch burger restaurant:
How many burgers are we going to sell on a Monday, Tuesday, a Saturday?
You have a profit & loss account. You put a balance sheet.
You make a capex, a capital expenditure list, of what you need.
The kitchen, the tables. How much money are you going to create?
Will you be able to pay back the financing agencies, the banks?
As you said. -Yes.
But the most important chapter of the business plan
is the entrepreneur itself.
Because the entrepreneur is someone with the motivation
with the passion to start a company. We say: You can make or break the company.
So when there is confidence without the outside capital from the bank
or an informal investor the owner, the entrepreneur
is the only one who makes it grow and sustainable.
I confirm that. When we went to the bank, they didn't jump on the numbers.
They didn't jump on the stories. They said: Who are you?
How do you get on with each other? How do you complement each other?
Will you still be friends in five years' time? What a risk if it breaks up.
Realistic question, yes. That's good to know as well.
Banks want guarantees.
How can you show that you are a safe bet in the business plan?
To have a good idea.
To know what kind of niche you want to act in.
Because almost all branches are really done here in Holland.
So you must find something unique
to cooperate or to work in.
And you almost bring your own capital
and that must be your own bank account or savings
but also you must look if there is a possibility
to do the bootstrapping of your own company.
Today: I'm also in risk, not only the outside capital.
But I want to invest also for my own company
and I'll take some risk to invest in the company.
Do you agree with this Geert?
Yes, I think entrepreneurs like naturally they are optimistic.
And banks are naturally looking at the risk side of the business.
And I think you should meet each other in the middle.
Because there is the financial plan that is also helping the entrepreneur
structure the business in the way the business is going to run.
The bank really wants to know: you want this amount of money
as a loan from me. How are you going to use it?
Are you going to use it for building, are you going to use it for a car, for an oven?
Are you going to use it for the salary payments of your employees?
And the more you can provide insights on how exactly are you going to spend the money
also the better overview you'll have as an entrepreneur yourself
on the way your business will run.
And maybe to add on the risk side of the business
the bank will ask for guarantees on the loan.
So they want collateral, that can be a house that you
or a house you have yourself or the building that you bought as a business.
And if, what nobody hopes, of course, but it happens, the company goes bankrupt
you can put that house or building up as collateral for the loan
that you initially got from the bank.
Geert mentioned something very important. He said:
the entrepreneur is very optimistic, the bank is more pessimistic.
When I go to the bank, I have both scenarios with me.
I have a realistic positive scenario: what could possibly go wrong?
I also have a very down to earth scenario: how much buffer is there?
That's the worst nightmare you mentioned? -Yes, and when we see
the business plan with the financial plan
we usually kept the cost and the expenses the same
but decrease the turnover about for 50 per cent.
And then we look, is it useful to start a company
and how was your return on investment? Do you get the revenues
and will you be able to pay the bank back from the loan you rented?
I much agree. Like the fixed costs that you have, they remain the same.
It's always the same amount that you spend on your building, on your staff
on your income and the interest to the bank.
The turnover you're making, that's where you actually make the profits.
And usually when you sell some services
your hourly rate will be about 100 euros
but you only work the half of the hours you can work every year.
So the rate must be very high and must be really calculated
to earn the money, yes, yes.
To cover all the costs, all those and insurances.
Gerhard, what was the most difficult part?
Well, I hear that the numbers are the most difficult part for people.
As a finance guy, the numbers are not the most difficult part for me.
Easy for you? -The most difficult part is:
don't underestimate the paperwork. It is a lot of paperwork.
It starts with the story with the compassionate story
commercial story, market research and the numbers have to complement it.
And be prepared or get someone into the team
to follow up on the paperwork
on setting up, establishing your company, the paperwork for the banks.
And many other things before, in our case, before we sell the first hamburger.
There is a lot of red tape involved, of course.
Red tape? Can you explain that? -Red tape, a lot of paperwork.
Can you explain certain rules maybe you had to think of with that paperwork?
The business plan itself, we talked about it
I think has a very, nearly rigid structure
and a minimum set of requirements for the bank
or anyone else who reads business plans would look for.
And the rest is very specific to the business.
In our case, setting up a restaurant you've got permits.
You've got to get a liquor license. -Yes.
You've got very clear rules if you have a terrace.
Where to put the chairs and what is the space to be able to walk through?
And that's all got to go in the request for that permit.
And there is many more things to consider. -Yes, lots of work.
You applied for a banking loan. Did you consider any other type of financing?
Yes, we did. As we discussed before
the bank financing is the cheapest form.
If you manage to convince the bank you have a viable business plan
it's the best way in terms of cost.
If you go to crowdfunding or any of the other mentioned ones
your cost will increase. So I think the bank is your first stop
for possible financing of your business.
I just heard that there is another viewer's question. It's for you, Gerhard.
What should everybody know when applying for finance?
What should everybody know?
That, well, it's a rigid process
that you have to follow. It's a process where you can get support
online, as we've heard, from many institutions.
And it's a story you have to develop
together with your commercial business partner.
It's a kind of you dance a tango.
It's a commercial number-tango, they both have to support each other.
One is not enough without the other. -What's your view on this, Geert?
I mean, for me it's do your homework. So make sure you have the right plan.
Another tip I'd like to give to entrepreneurs
is take the outside perspective.
Would I invest in this business if it was not my own business?
And because as an entrepreneur, you are in love with the company you're founding
or that you started and you're growing, but make sure that...
Think like a bank or as an outside investor and would you still put in your money
that you're asking somebody else? -Put in your own money.
As well. -Angèle, what I'd like to know:
Is a business plan obligatory?
No, you're not obliged to make a business plan.
But when you're searching for a loan then you're obliged to make a business plan
because the bank looks for all the chapters within the company.
So, yes, then it's obliged, but it's easy to make a business plan for yourself.
It'll give you, you can look to the purpose you make, the focus
and it makes transparency for the company.
And when it's out of your mind and it's on paper it give you also
a relax to start up the company. -Yes, I can imagine that.
It's not static, it moves on with you.
It's a good process to go through, writing your business plan.
It makes you focus on all these aspects
and you'll probably find out things that you would have forgotten maybe
if you wouldn't have gone through this process.
It gives you some structure as well. -Exactly.
Where can people find information on writing their business plan?
You can write on a beermat, that's also possible.
It's a bit small.
But when it's a very good idea like a burger
it combines with the beermat.
There are also some templates.
I think every Dutch bank has a template for making a business plan.
But there are also other organisations like Qredits for microfinancing.
They have also a template to make a business plan.
Do you have any tips?
In this sense, like what I said: Make sure you do your homework.
Seek advice.
So, if you're insecure about parts of your business plan
if you're not the best at marketing or not the best at the financial plan
make sure that you ask your bookkeeper or an external financial planner, advisor
to help you with it. Still make sure that you understand it yourself
because you're the entrepreneur. You have to run the business.
So you have to understand your finances and seek help from other entrepreneurs.
Go to people in the same business or a totally different business
who basically went through what you're going through.
And make sure that you keep their advice in mind.
Anything to add to that, Gerhard? -Just before you go pitch it to the bank
indeed, pitch it to other people. You get feedback
and you'll be much more secure and good in presenting to the bank then.
It's also possible to pitch at the Chamber of Commerce. We don't lend money
but we want to help you to go further with your company.
Okay. For more information please have a look on the website business.gov.nl.
I'd like to thank all of you, Angèle, Gerhard and Geert.
Thank you for sharing your expertise and experiences.
You're welcome.
An essential part of your business plan
is choosing a type of financing suitable for your business.
In the Netherlands there are many types of financing, but which one do you choose?
I'll talk about this with René Kamphuis from the Netherlands Enterprise Agency.
Gertjan Tienkamp, account manager at the crowdfunding platform Geldvoorelkaar.
Roy Spit, director of Qredits
and Claudio Gerardi, owner of Fietseria.
Before we start our conversation, let's take a look at an overview first.
Are you looking for ways to finance your business?
Consider the different possibilities and combinations.
If you only approach one financing institution e.g. a bank
then this party is unlikely to lend you the entire amount.
The bank namely wants you to invest part of your own capital.
Or find other investors e.g. family, friends, an informal investor.
An investment fund or crowdfunding. By investing capital yourself
you can convince the bank to give you an additional loan.
The government can also contribute e.g. by guaranteeing financing
or by bringing you into contact with suitable financing parties.
Combining multiple ways of financing is called a financing mix.
A financing mix will ensure that you find the most suitable investor
for different parts of the total investment.
With the financing mix you can get the capital needed to execute your plans.
Welcome Claudio Gerardi. -Hello.
How did you find out about the different types of financing?
At the begin, I start to do some research on the web.
Then I ask some friends and other people who are already running a business.
And also I receive some info from the Chamber of Commerce
when I start up, when I register myself in their company.
Very good. And you've started your own business, Fietseria.
Here in the Netherlands. Why here?
So, I work in the horeca field since ten years
and I discover different places in Italy and in Europe, as well.
I went in London before to be in the Netherlands
but I didn't like the English lifestyle.
On a suggestion of a friend, I chose to come in Amsterdam.
In 2015, and for me it was
a nice surprise to see that in the Netherlands
the lifestyle is way better. -Oh, yes?
Than other countries that I already tried.
So, for me was kind of also first love if we can say like that.
Let's take a look at your company, Fietseria, and the way you financed it.
We have a video to take a look at.
Nice. -Nice, I'm curious.
Fietseria is a new mobile catering concept
and it works for private catering and events.
This new concept brings pizza everywhere and for everybody.
I'm Italian, I'm a pizza lover and I know how real food taste like.
I start in 2017 this new concept.
I was looking to build up an ecologic food truck.
To build up a new catering service and build up the Fietseria.
When I start the project, this special bike was still a prototype.
So, was not on the market. Luckily, I find it one day on the street
and then I find the name of the company.
The first steps was to calculate the cost for the entire project.
And with some money saved on my own I start to buy some machinery.
I calculate that I need an extra budget for end up the structure.
I wrote a business plan. I download credit form of the business plan.
And when I did the log-in, Qredits gives to me all the necessary tools
to build up a stable business plan, to do a right research.
After some researches, I figured out that there were different ways
on how to get my money. One was the bank way.
The other one was the crowdfunding and then the micro-financial.
The first step was to ask around
to people who were already running business, some tips.
Due to the fact that my budget was not that tight
I choose for the micro-financial.
Because was the easiest and the fastest way to offer me money.
I'm working as a freelance pizzaiolo
and I'm developing catering service and festivals.
Moreover, I'm working to build up a new structure for the Fietseria
and try to make it a franchising.
Roy Spit, your company Qredits believed in the idea of Claudio. Why?
Claudio really prepared himself. He went to the Chamber of Commerce.
He had a viable business plan, he sent in the right documents.
So, he had a location scan of the Chamber of Commerce made.
So, that was for us the first main step to meet him.
With all the documents, our loan advisor made an appointment with Claudio.
Then we thought: this is the man who is baking pizzas.
We saw it in the film so no doubt about that.
Claudio, are you already making a living with the Fietseria?
No, because Fietseria is still an ongoing prototype.
We're on the last phases of the project so in the meantime
I'm working as a freelance pizzaiolo. I'm doing some consultancy.
What's a pizzaiolo? It's very Italian.
Yes, pizzaiolo, in Dutch you can say pizzabakker.
So you're doing this job together with the pizzaiolo and the Fietseria together?
Yes, let's say that Fietseria is a project to follow.
And I'm almost done to put the structure and product on the market.
Ready for other people.
But in the meantime, yes, I'm working as a pizzaiolo.
Very good. -Like what I said.
And I'm doing some consultancy on the side.
And when I get the opportunity to do some catering or events, I'm also in.
Thank you so much. Roy, I was wondering.
Your company is specialized in microfinance. What is microfinance?
Well, microfinance actually is the... We started in 2009.
As a microfinance company and that means we are a foundation.
As a foundation we help entrepreneurs, starting and existing entrepreneurs
with loans up to 250,000 euros.
But microfinance is not only about loans, it's also about mentoring
supplying the right tools. For example, Claudio
who used our template to write a business plan, our e-Learnings.
So microfinance is more than just a loan. It's all about mentoring, tools and credit.
Okay, and what's the main difference between Qredits and a bank?
The main difference is that we are a foundation
and for the banks who have shareholders and we talk a lot about shareholders value
but shareholders are important for a bank so profit is very important for a bank.
That makes it very hard for a bank to make these small loans profitable.
And for us, as a foundation, that's not our main target.
Our main target is to help the entrepreneurs and to be sustainable.
I think that's the main difference. -Okay, and Claudio
you chose microfinancing.
Why did you think this was the best way for you?
I was looking to get a small amount of money.
Also take a look into the crowdfunding process.
But I thought that for a crowdfunding process you need a bigger plan.
And also the time for a crowdfunded process is way longer
than what a microfinancing process can be.
So then, yes, I chose for Qredits.
Because as I told you, it was the easiest and fastest way for my money.
You talked about crowdfunding. Gertjan, you know everything about crowdfunding.
And is a concept like Claudio's Fietseria interesting for crowdfunding?
Yes, it is. We have to make an appointment after the show.
Why not? -But yes, it sure is.
What are the basics of crowdfunding? -The basics are that
you get small amounts of funding by a large amount of people.
So, for example, if you need 25,000 euros, we can get 100 people
who all do 250 euros and then you get a large pot of money.
And we can help entrepreneurs get that capital.
For what kind of companies is crowdfunding an option?
Well, it's suitable for all kinds of enterprises
but the most of the projects we do for small to medium-sized enterprises.
It's essential that the entrepreneur has a good business plan.
And a decent track record.
At crowdfunding you have to convince investors to invest in your proposition.
So that's a track record and the business case has to be good.
A lot of people think that crowdfunding is just a donation form.
Or for social projects. -Is it not?
It is, but you have multiple options.
Because like 70 per cent of all crowdfunding projects are socially-related.
But 90 per cent of the money invested in crowdfunding is for enterprises.
I didn't know that. If you want to know if crowdfunding is suitable for your company
you're welcome to take the crowdfunding scan at business.gov.nl/crowdfunding.
So, Roy and Gertjan, how do people, companies reach out to you?
I think most of the smaller enterprises just have a look on the internet.
Like Claudio did. Google is your best friend when you come to the Netherlands.
And there you see multiple options, so I think it's a lot through the internet
but we see a lot of professionals helping start-ups
like accountants, bookkeepers or other professionals or consultants.
And they also have a great view of the alternative finance landscape.
So, they can also help you
but for the smaller amounts we see a lot of people looking on the internet.
How do you know if an idea is viable?
That's a good question. We think that we have to meet Claudio to have a good idea.
But as I said before, it starts with sending in a viable business plan or the documents.
Like Gertjan said: You know, you really need documents to get an idea
if it's wise to visit the applicants.
It starts with sending in and really think through what you're sending in.
We see that 40 per cent of all the applications are without any documents.
So, then you can be a good entrepreneur, but it doesn't help you
to make the first main step and to have a visit from one of our loan officers.
Gertjan, crowdfunding as a means of financing is growing in stature.
Do you have any idea why this is happening?
The crowdfunding market really matured over the years.
When we started with Geldvoorelkaar in 2011
it was the first crowdfunding platform in the Netherlands
and it was all new for investors and for entrepreneurs.
And now it's more known
and when banks offer low interest on savings
investors want to look for other options. Low accessible, easy accessible options.
And that's why investors like to invest in entrepreneurs.
And for the entrepreneur, they look for capital.
And we bring those two together. -There are different types of crowdfunding.
Which types are there exactly? -I'll define four.
You have the donation-based model, like I said earlier.
Then there is no reward for the investment you do.
Then you have a reward-based model.
That's like you get a T-shirt or a pen or a glass.
But also like Kickstarter that you get a product for the investment you make.
Then there is equity-based. So for your investment you get a share of the company.
Or through a convertible loan. And there is the loan-based model.
And a loan-based model is, like it says:
It's a mini loan with which you help the entrepreneur
and you get repaid and interest for it.
Which type is used most often? -The last one.
It's really clear and simple. For the investor, they know they get repaid.
And they get return on their investment, like interest.
And the entrepreneur knows for the duration of the loan
I have to pay this amount every month, on a monthly basis including interest.
A combination of crowdfunding and microfinancing is that common?
It happens. At the moment, we go live
with a project that is started with microfinance
and it has matured over the years and now it's scaling up.
And they come to us and we do a crowdfunding campaign.
I see you nodding Roy. Do you agree? -Yes, it is possible
but let us not make it too fancy.
Because there is also some difficulty in combining
and that's that we all want to have some collateral.
I think it's very hard to combine the same type of finance
like crowdfunding, banks and Qredits up to 250,000 euros.
The smaller amount is harder than bigger amounts to combine.
We see a lot of combinations with other types of alternatives like
when you talk about leasing or factoring
it's easier to combine different kinds of alternatives
than the same kind of alternatives because then it comes to collateral
and we all want to have some collateral. -What Roy says is totally true
about the collateral, but there are entrepreneurs
who look for crowdfunding because there is a second advantage.
That's the marketing aspect of it. -Of course.
Because every investor investing is a promotor for your company.
If I invest 1000 dollars in a bakery
I'll tell all my friends and family to buy a bread at that place.
So that's the marketing and publicity effect
that a lot of entrepreneurs like about crowdfunding.
And it works. -What kind of loans does Qredits offer?
Actually, we have three types of loans. It's quite easy.
We have micro loans, it's up to 50,000 euros.
Then we have SME loans for the medium enterprises up to 250,000 euros.
And we have flexible loan. A flexible loan is more for working capital.
And it's up to 25,000 euros.
So these are the three types of loans we have.
How does that work exactly?
To do an application or the type of loan? -Yes.
The type. We only have loans that you repay within between one to ten years.
We also do mortgages and these are up to 20 years.
So, if you want to buy a property for your business that's also possible.
Then it's up to 20 years.
That's also a branch very difficult for banks at the moment.
Properties for businesses.
But most of our loans are about repayment within four or five years.
So, that's the typical loan. I don't know what kind of loan you had?
I have the microfinancing loan
and I will pay back the entire amount in three years.
Three years? -Most of the time we have a grace period.
For start-ups it's better to only pay interest in the first five or six months.
So you can build up... -That's the way I chose.
Then you can build up your business, get some cash flow
and then you can pay it back in three, four, five years
but only up to ten years.
The flexible loan, then you don't have a repayment.
So, within 25,000 euros you can repay and you can withdraw.
So, it's like, sort of a bank account. -Exactly.
Okay. And how do you apply? Digitally or in person?
We still get some post
but 99% of all the applications come through the internet.
You get some post, actually? -Yes, we do.
Real paper. -Real paper, yeah exactly.
But most of them come through the internet. It's only three-four steps.
The preparation, if you have the documents
within five minutes you can do an application. Also at Geldvoorelkaar.
If you have the documents it's not so hard to apply.
Is it the same for crowdfunding? -We're an online-based company.
So, it goes through our website
but we do discover possibilities by phone, mail or in person with the entrepreneur.
Or with an accountant or advisor like Roy said earlier.
First you apply online? -Basically it's online.
When the financing proposal is ready we publish it online
and investors invest online.
I would like to involve René again.
Welcome back, René. -Thank you.
Can the government offer help? Maybe, like, subsidize?
Yes, of course.
We have a lot of financial instruments available for entrepreneurs.
It's not always like crowdfunding or micro credits alone.
But we offer a lot of instruments that fill in the gaps in the financial landscape.
That's basically also the main goal of the government.
We also have a lot of subsidies in place
to achieve some stimulation in the economy on certain points.
Very relevant at the moment is energy saving
and new energy projects.
There are subsidies for these investments.
What are the conditions for getting a subsidy?
They differ a lot, because subsidies differ also
in the goals that they have to meet.
But in general you just have to fill in forms for a subsidy
that describes where you are going to use the money for.
And what the investment is going to be where you apply the subsidy for.
What are the chief misunderstandings concerning subsidies?
Well, the biggest mistake that people have in their heads about subsidies
is that they think that every financial instrument of the government is a subsidy.
It's not? -No, it's not.
And it's even less than, for instance, ten years ago.
There are less and less subsidies available.
Instead, you will find instruments like loans, like SME guarantees
where we provide a guarantee to a bank loan
where there's not enough collateral for the bank.
In that case we can provide the collateral that the bank needs to provide the loan.
But we also have equity programs and proof-of-concept funding.
We do a lot of different kinds of instrumental projects.
I want to get back to Gertjan and Roy. What are the risks...
or let me rephrase it, the pitfalls for entrepreneurs?
I come back to the subject of transparency. That's quite important, also in the plan.
We see a lot of entrepreneurs, most of them have only a best case scenario.
That's very good. They're an entrepreneur and apply for a loan
because they think: I really have this plan and it can only succeed.
But reality is different. Anything can happen:
Illness, divorce.
So, also think about what will happen in a worst-case scenario.
When turnover isn't that good, or whatever, you know.
Just think about it and write something about it in your plan.
Do you have a partner with income?
All the subjects are important for us as a finance institute
to know how your reaction is when you get in trouble.
For us that is very important to know and write it down in your business plans.
Most applications don't have anything in their plan about this
so I would really recommend to do that.
A good tip. -Thanks.
Did you think about the pitfalls when you started your Fietseria?
Yes, but luckily
I have a really nice job. Really.
Because a job as a pizzaiolo is well-paid.
So in the case that my supposition would go on a bad way
I still got my job, and I can pay back the loan.
You discussed this with Qredits as well when you asked for financing?
Of course. -You wrote it in your business plan.
As well, yeah. -You talked to the Chamber of Commerce.
You had a location scan. You did quite some preparation.
I have to say that I received a lot of help
from the phone assistant of Qredits and the Chamber of Commerce.
Really, they helped me out a lot and I just...
I just had one question
and they filled my brain with a lot of information. So, it was really helpful.
There's a question for you to fill your brain with.
What did you underestimate during the process? It's a viewer's question.
Yes, what I underestimate.
I underestimate the fact that a good plan can save you time.
And in business time are money.
So, I developed the project
together with a job on side.
So, supposed to be back and restart again
I will focus more on the planning of the whole project.
Well, we have another question for you from the viewers.
If you had to start the financing process again, what would you do differently?
First, an important point for me
is to understand how to split the business from your private life.
This, for me, was a big problem at the end.
When you start, you... For me, with anything new, so...
all my focus was on my project.
I understand that people might be annoyed
that I were talking about my Fietseria always any time.
And you can lose some friends. -Ah, did you?
Yeah, I did, but...
It doesn't matter. That means this friend was not really important.
Thank you so much, gentlemen, for sharing your information with us.
Summing up, there are many possibilities to get funding
depending on the kind of business you have and the amount of money you need.
You have to be able to give detailed information
and be able to pay back. Thanks again.
Be to the point, don't arrive late and look neat.
These are some elements of the perfect pitch.
I'll talk about how you can present yourself to an investor
with Gertjan Tienkamp of the crowdfunding platform Geldvoorelkaar
Roy Spit, director of Qredits and Claudio Gerardi, owner of Fietseria.
Claudio. -Hi, hello.
Hello. How did your presentation go? Did it go well?
For me, it was easy to get a line to follow.
So: where do I have to put this, I have to find the right info.
And how did it go? Where you relaxed or stressed?
No, I was a bit stressed, but...
At the end I was sure that the idea got good walue, value, sorry.
Okay, so that relaxed you a little bit? -Yes, that was my calm point.
How did you prepare exactly?
I wrote down a business plan, which was not big. Just three pages.
I put in the business plan some numbers about provision.
I also included some picture of the bike because at the time people
couldn't imagine how pizza bike look like.
Then, also I added something about my private life
which was my income at the moment, which job I was doing on the time.
So that was very complete.
What important tips did you receive from the Chamber of Commerce and Qredits?
I received a lot of important tips from these two entities.
The first one, and the most important, was a right form of business plan.
From the Chamber of Commerce I received marketing research
which was specific for my field.
Moreover, I received tips on how to deposit my trademark
because that was my biggest problem:
How to protect my idea, as such a new idea.
They helps me a lot.
So, they direct me to another association, which is the BOIP.
They help me also on how to edit the trademark deposit.
Okay, and did you also get tips like, did you have to be a BV or not?
Yes, this was another important question on the time.
Because I was working as a ZZP'er.
And I asked if for the Fietseria I should make a BV.
But, luckily, they suggested me to continue on that way.
Then if the Fietseria would get value
then you can transform it in a BV.
Yeah.
And Roy, what does a good presentation consist of?
Well, let's say we visit all our...
Or most of our applicants.
When it's an existing business, we visit them at their business.
When they're a start-up we visit them at their home.
So, it's very important for us to visit the applicant in their own environment.
What we see, I wouldn't recommend to open the door in your sleeping outfit...
Do people actually do that? -People do that.
So, clean up the house and make a cup of tea or coffee.
And add pictures like Claudio did. And let us feel that you really want to do that.
Not that you're on social benefits and you say:
'There was nothing else I could do, so let's start up a business.'
We have to feel that you fit the business that you want to have.
So, that's actually the main advice I can give.
Be yourself. -That's a good tip.
Do you have anything to add to that?
At crowdfunding the presentation is online and you present to investors.
So, an investor decides in five minutes if they're going to invest or not.
The story has to be very clear and simple.
If you have a very difficult or complex product
then make a video, add some pictures.
In that way an investor can easily and quickly decide whether they want to invest.
Is it about the entrepreneur's likeability? -Yes, it's very much about the likeability.
Investors at crowdfunding
are about profit and are about
the returns on their investments but also: is it a nice entrepreneur?
What's the background, what's the motivation behind it?
And, eventually, do I have a good feeling with the guy I'm going to invest in, or girl?
And you get goodies as well, right, when you...
Yeah, we do advise to use incentives
like a discount or a part of the product
you're willing to offer to your investor.
Netherlands Chamber of Commerce has also lined up practical tips for pitching.
Personalize your presentation, every investor is different.
Explain why you want to start your business. What's your passion?
Stick to the essence of your story.
Practice your pitch with friends or acquaintances and/or in front of the mirror.
Keep it short and simple.
Gertjan, in what way does a digital presentation differ from one in person?
A digital presentation, you can't discuss or get a reply to your investors.
So, the story has to be very clear, very simple, like you just said.
But also must not raise any questions.
What makes your bike unique? -What makes my bike unique?
My bike is unique because it's the biggest bike on the market.
The biggest pizza bike on the market.
You can find bike capable to bake 200 pizza.
Only getting your bike, cycling around, stop on the spot.
Put up your structure and then you can bake 200 pizzas.
The structure is a tent as well? -Yeah, it's a handcraft tent.
All the system, I have built it on my own.
Wow. -The only help I got for the structure
was from a welder
and from my father. -Very good. That sounds unique.
Roy, when entrepreneurs present their plans at Qredits
which is most important? Is it the numbers, the story or the entrepreneurs themselves?
When we have the plan and we've read it, we want to know who's the entrepreneur.
Who's the man or woman behind the plan. So, the entrepreneur comes first.
We get curious because we want to know who's the man with a plan for a pizza bike.
A fietseria. That's the most important thing.
So, the story and to know the story we have to meet Claudio.
Or we make a video call, that's also very common.
To speak people on a WhatsApp.
And then the numbers. You talk about the numbers, you talk about the financial plan.
I really would recommend to also put some effort in the financial plan.
Because we see a lot of people telling a lot about the story
but they don't have the skills to write a financial plan.
And how do you actually find out who you can work with or not, Gertjan?
Well, a good entrepreneur knows what he's talking about.
He knows his market, he knows his branch, his bike. He knows everything.
It really comes with passion and convincement in their story
and their business plan.
What if you're not so good at pitching? What then?
At Geldvoorelkaar we help the entrepreneur
to get a good pitch for the investors.
So, videos, pictures and a really nice presentation.
But I think it's not a very difficult way
to get some help if you're not really that good in it.
Do you agree? -Yes, it's not the main thing.
What we want to do, is to meet Claudio in his own environment.
If he's a good pizza baker, and if he has the right skills like hospitality to sell them.
And pitching is... I think for crowdfunding it's more important than for us.
But I think you also help people with writing a pitch, that's not a problem.
Let's be honest, for a bricklayer
it's not the most important thing to have a good pitch.
If you are a consultant, we look at how you pitch yourself, but that's another thing.
Just a small part of the market, it's very important to have a good pitch.
You give tips for that as well? -Exactly.
Do you want to know from entrepreneurs who want to start a business in the Netherlands
why they want to do it here?
Yes, we will always ask them.
We want to know why they're here, do they have relatives or family over here?
What's the reason they come over here?
Because we also want to know, what's the risk that they go back with a loan?
We ask these questions and we want to have straight answers.
Did you practice your presentation, Claudio? And how did you do it?
Yeah, I practiced my presentation
but only on the numbers side of my business plan.
Because for the rest, it was quite natural for me.
Because I built up from the first screw my bike.
I'm a pizza lover. Pizza is something in my blood. You can say it like that.
So that part wasn't difficult for you. -No.
What would have done if you hadn't succeeded? Did you have a plan B or C?
Yes, my plan B was just to go back to my old job.
Start to do a pizza again, and pay back my debts.
That was my B plan.
Sounds like a good plan B. -It is.
Thank you so much for being here and sharing your expertise and experiences.
You're welcome.
We've come to the end of this webinar. Thank you for watching.
For more information please visit business.gov.nl.