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.
- 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.
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.
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.
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,
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’ .