Finding funding to grow your business

  • KVK Editors
  • Background
  • 11 November 2024
  • Edited 15 November 2024
  • 3 min
  • Managing and growing
  • Finance

Your product or service is catching on and your business is doing well. You want to grow your business. For the growth phase, you often need extra money. For example, for more stock, new employees, or to rebuild your business premises. Perhaps new equipment or machines will allow you to work more efficiently and sustainably. Or you might want to start in the international market. Read where to go for financing your growth and what to look out for.

Work out your plans

Chances are you made a business plan when you started your business. Update it now to match the growth phase of your business. Do the same with your financial plan. This will give you a good idea of the amount you need, what you will use it for, and how much you can contribute financially.

Make a forecast showing the investment needed. Then a financier can assess the impact of the financing. The forecast also shows the development of your cash flow. So whether you can repay the financing. With your plans worked out, a financier can assess the growth of your business with hard figures. And the financier will see your mission and motivation as an entrepreneur

Discussing finances

Are you going to adjust your financial plan? Discuss the following questions with your bookkeeper, accountant, or an adviser with the quality mark Erkend Financieringsadviseur MKB (Approved SME Financing Adviser, in Dutch):

  • How financially healthy is your business?
  • How will growth affect the finances of your business?
  • How much money is available from your business or equity for the investments you want to make?
  • What is the smartest and cheapest way to pay for these investments?
  • Is it with your own capital (equity) or with financing?

Choosing a type of financing

Are you going to use external financing? Then there are several options. Use the Choosing Financing Tool. A few questions will take you to the types of financing that suit your situation. And to organisations that offer these types of financing.

The types of financing often used to invest in growth are:

Applying for financing

Each financier has their own requirements. Check this in advance and then start your funding application. Make sure you have a clear story that you can tell in a short pitch.

Elements of your financing application

With your funding application, you want to convince the financier. Clearly state what you need the funding for. And what that extra money means for the development of your business. Make it clear that you have thought about repaying the loan. To do this, make a repayment plan. How and when will you repay the loan? What happens to the business if you are unavailable to work for a while? And have you considered paying your own salary? After all, you also need to be able to make a living from your business yourself before you can repay the financing.

Read more about preparing a funding application.

Are you not sure how to do it yourself and want to get help right away? See who can help you with your funding application.

What do financiers look for?

Financiers assess your application. They will pay attention to the results of your business. Do you have enough cash flow so that you can repay the loan? If your business has been around for a while, your financial statements can give a picture of your financial position. With growth, the lender also pays attention to your forecasts. What are the expectations for the coming years? And will the investment contribute to the growth of your business? Make these clear in your business plan. In addition, the financier is interested in you as an entrepreneur and in your team. Are you capable of growing the business? And do you have the right knowledge in-house? Read more about what financiers look for when assessing your plan.

Subsidies and schemes

Apart from external funding and your own equity, you can also investigate using a subsidy or tax scheme. A tax scheme will not give you funds for your investment, but you pay less tax. Subsidy schemes usually do pay out money.

Subsidies

Use the RVO’s Subsidy and Funding Guide to check which schemes suit your plans. Study the conditions and plan enough time to prepare the application. You can also consult an advisor. 

Schemes

Well-known schemes you can use for growth are:

  • Proof-of-concept  Funding (VVF)
    Are you starting with a new product or service? A feasibility study will help determine whether your ideas are promising. As an SME or innovative starter, you can apply for Proof-of-concept Funding (VFF) for such a study. Read the conditions carefully before applying
  • Innovation Credit
    Are you working on the technological development of a new product, process, or service? If so, you may be able to use the Innovation Credit. You get a loan for part of the development costs.

Help with business financing

The Financing Guide helps you find your way in financing your business. Do you still have questions? Call the helpline on 088 585 11 11 or ask an expert.

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