How do I handle my finance growth?

How do you get money to finance your growth plans? Do not run directly to the bank, but study the possibilities. We will help you on your way. Five options in a row and two golden tips.

  1. Own money

Always check first what is in your own wallet. That is what a possible external financier will also ask. If you are willing to invest your own money, a financier will be more willing to step in. Also check how much money you can make within your company. For example, you can withhold more profit to invest in growth . You may also be able to organize or further automate processes more efficiently. The money you save as a result can be spent on further growth.

  1. Factoring

One way to free up money within your company is through tighter debtor management. Many SMEs suffer from late paying customers. Recognizable? If you would receive your money faster, you can invest faster. One form of financing that ties in with this is factoring . Also called debtor financing. A factoring provider can pre-finance your invoices and even take over your credit management, at a certain interest rate. If you have a lot of outstanding invoices that are not paid quickly, this can be a useful form of financing for you.

  1. Credit

You can turn to the bank or another financier for a business credit. When it comes to (a series of) small, fast investments, a bank overdraft can provide a solution. This allows you to be temporarily overdrawn on your company account at a relatively high interest rate. However, if you want to make a substantial investment and pay less interest on it, it is better to choose another business credit form . At the bank you also have credit and loan types, especially for innovation and growth. For temporary credit at a relatively high interest rate, you can also turn to online credit providers, such as Spotcap.

  1. Crowdfunding

Also through  crowdfunding you can finance growth. With crowdfunding you appeal to ‘the public’. You can start a campaign and present your idea or product via a crowdfunding platform (website). Individuals can easily invest, donate or lend money through the platform and that way your plan can be funded. The big advantage of crowdfunding is its marketing function. Your company and your product are in the spotlight, especially if the campaign is successful. You do have to expose yourself to a large extent, even make your finances public. A crowdfunding campaign also costs you quite some time and the chance of success is no greater than with a bank. If you have an attractive and well-founded story for a large audience and / or you can promise investors a good return,

  1. Grants

For many financiers, the financing of growth involves a lot of risk and uncertainty. The government is therefore lending a hand. You can get a surety credit through banks (and a few other financiers). This is part of the  BMKB scheme  (SME guarantee). The Dutch government guarantees a large part (60 to 67.5%) for the credit. As a result, the bank is also more willing to finance and sometimes on better terms. There is also the growth facility especially for growth plans , where the government guarantees a growth loan for 50 percent.

6. Make a financial plan

Before you go to a financier, it is smart to first determine exactly how much money you need and for what purpose. Make an operating budget and liquidity budget .

7. Money for innovation

The word ‘innovation’ opens doors. If your growth is also innovative (innovative), you have even more subsidies and financing forms for financing. Read more about innovation and its financing in the free  white paper ‘Money for innovation’ .…

Seven tips to keep your business healthy

During a crisis, you do everything possible to keep your company afloat. You cannot influence all factors, but there are ways to minimize the risk of bankruptcy.

Whether you are dealing with a short recession or a serious crisis, as an entrepreneur you are often at the mercy of the whims of the market. You cannot change that, but you can change how you deal with these whims. To help you in the fight against bankruptcy, here are seven tips to keep your company financially healthy in tough economic times:

  1. Have a good liquidity budget

A good liquidity budget helps you gain insight into future income and expenditure. You make an overview of all bills you have to pay, how much VAT you have to pay and which payments are still expected. Do you already have a liquidity budget? Then now is the time to adjust it to the current situation.

  1. Good debtor management

Badly paying debtors cost entrepreneurs a lot of time and money. Certainly in difficult economic times, defaulters pose a serious threat to the cash flow within your company. Therefore, make sure you have well-organized credit management so that you can do everything you can to get invoices paid on time. It is important to be able to see at a glance who to send a payment reminder and who to call.

Do realize that your customers are probably also in dire straits. Do not be surprised if one of your debtors sends a letter asking for a postponement of payment. You can choose to discuss a possible payment arrangement with these parties. After all, you cannot pick from a bare chicken.

  1. Provide a financial safety net

To avoid running out of capital in the event of the slightest setback, it is important to create buffers. It may be a clincher, but don’t underestimate the importance of savings. You can also opt for a revolving credit with the bank or another lender

  1. Improve your cash flow

Is there really not enough money coming in? If the costs exceed your turnover, your reserves will disappear like snow in the sun. It is then advisable to take a look at any government schemes and loans. In times of crisis, the government sometimes comes to the rescue.

A large emergency package has been developed for the corona crisis with various measures to keep SMEs afloat. Read all about the emergency kit here.

  1. Investigate financing options

Are you thinking about borrowing money for your business? Then immerse yourself in the various financing options. Besides borrowing money from the bank, there are more ways for entrepreneurs to find additional financing, for example through the guarantee scheme for small and medium-sized enterprises (BMKB), the Growth Facility scheme, one of more than 300 types of subsidies .

Also take a look at the possibilities for crowdfunding. You do not turn to traditional investors, but to other citizens: the crowd. At the Business Credit Desk you will find a lot of information for support when applying for credit.

  1. Invest in relationship with the bank

It pays to invest in a good relationship with your bank. Always be honest and transparent about the financial position of your company. Do you need additional financing? Please indicate this on time, a proactive attitude helps.

So show what you can offer the bank in terms of collateral as an entrepreneur. Banks are not very eager to assess your credit application if it turns out that you are already on your lips.

  1. Explore your opportunities abroad.

Abroad offers plenty of opportunities with a well-founded plan. Of course you cannot start a business across the border if the borders are closed, but you can make plans for the future. Every crisis comes to an end, so make sure you are one step ahead of the competition by already looking at growth opportunities after the recession.…