Applying for a loan as a self-employed professional

This article presetnsa list of financing options. These allow you to finance business assets and working capital. Working capital gives your financial space if you temporarily have more expenses than income in your company. Borrowing business capital costs money, since you pay interest on the money you borrow. Start looking for funds within your company to avoid extra costs.

Internal and nearby

First, organise financial space within your company. Make sure to check if there are tax deductions. For example, you can apply an investment deduction if you buy business assets. And let your customers (debtors) pay faster. Bootstrapping allows you to make optimal use of available resources while keeping your costs low. This way you reduce your external financing needs. Before engaging commercial providers, consider borrowing money from family or friends.

Borrowing money from family or friends

Your family and friends are close to you and support you. Sometimes with money. Perhaps you need money temporarily as a bridging loan or for a longer period of time if you are going to invest more money in company assets. If you borrow money from family or friends for your business, it is a business loan. So, address it as business. Put the agreements on paper and pay interest and repayment. That is how you keep the relationship good.

Supplier credit

Do you need a laptop or phone? The supplier can often give you a credit. Buying on instalment costs extra money. When purchasing a smartphone, for example, the supplier combines the instalment with the subscription in the monthly amount.

Microcredit

A microcredit is a business loan up to a maximum of €50,000. You mainly use this for investments in company assets and/or a stock of products. The term is between 1 and 10 years. Each month you repay part of your loan plus interest.

Applying for a Fintech loan

Fintech stands for financial technology. In other words, using online technology to organise business credit or keeping your records. Fintech financiers offer temporary funding for working capital. The amounts are from €5,000 to €250,000.

Factoring

With factoring, a bank or factoring company provides you with a credit or largely advances an invoice. Factoring can be used for invoices between entrepreneurs from €100. Factoring is not available for customer invoices.

Leasing

With leasing you finance business assets. For example, a car, delivery van, machine, or computer. There are several types of leasing. With a financial lease you take out a loan. For example, you own a car and repay the financing in instalments. You also bear the economic risk. In the case of an operational lease, the lease company remains the legal and economic owner. You are renting an object, as it were. A private lease for your car is also an alternative for the self-employed.

Bbz: assistance for the self-employed

In the event of a financial setback, you can apply for income support and/or credit via the Decree on assistance for the self-employed (Bbz). The Bbz offers a credit of €45,483 for entrepreneurs who have been active for up to 1.5 years. Longer established entrepreneurs can apply for a maximum of €247,047.

Tips and warning

Use the following tips as you prepare your funding application:

• Make sure your administration is up to date, so that a financier can quickly assess your application.
• Convert the interest to an annual interest rate and determine whether that rate is appropriate. The MKB Financiering Foundation gives a maximum of 20% per year for costs including interest. The Foundation has a quality mark for affiliated financiers (in Dutch) and financing advisers (in Dutch).
• Compare offers from 3 financiers. To make a well-considered choice, pay attention to the interest rate, duration, and costs for closing the agreement. 
• Read the fine print of the credit proposal. An understandable contract, a quality mark and membership of a trade association will help you make your choice. A quality mark and membership of a trade association ensure that financiers must adhere to the rules of a code of conduct. The code of conduct requires them to be clear during the financing process.

Increase your success

You select a financing type in advance via the financing flowchart. That way, you can find a suitable financier more easily. Also, view the criteria that financiers use before you apply for a business loan as self-employed professional. If necessary, adjust your business operations beforehand and discover alternatives if you score less on a criterion.

More options and help

Discover more financing options in the overview. Are you looking for help with applying for financing? There are several advisers who can support you.