Finding funding to start your business

Make a business plan

Start with a business plan. The business plan will help you define your ideas, goals, and how you will do things. The plan lists all the steps you will take to achieve your goals. It forces you to look ahead and work out different possibilities. With the plan, you are well prepared for everything that is going to come your way.

The parts of your business plan

• The entrepreneur: Who are you? What are your qualities and skills? Why do you want to start as an entrepreneur?
• Your business: What will your business do? Which legal structure will you use? Will you be hiring staff? And where do you think your business will be in a few years?
• The marketing plan: Who are your customers and what do they need? Who are your competitors and what makes your business different? What are the developments in the industry and how will you respond to them?
• The financial plan: How much money do you need for your plans and where will that money come from? You also describe turnover and how you will achieve it. What costs you will incur. And how much profit do you expect.

Make a financial plan

Are you looking for funding to start a business? Then you must convince financiers of your idea or concept. A well-prepared financial plan will help. In the plan, you show the financial feasibility of your idea and how you intend to make a profit. 

The financial plan consists of 4 budgets: 

• Investment budget: how much money do you need to start your business? Consider expenditure on equipment, stock, the deposit for renting premises, and working capital.
• Financing budget: where will you get the money for your investments? For example, your own money, and money you will borrow.
• Operating budget: what turnover do you expect and what costs do you have? Make a realistic estimate.
• Liquidity budget: when is money coming in (income) and money going out of your business (expenses)? You can use this to see whether you have enough money at any moment.

Together with an adviser with the quality mark Erkend Financieringsadviseur MKB (SME Financing Adviser, in Dutch), you can draw up your financing plan and submit the application.

Choose a form of financing

You now know how much money you need to start your business. How will you raise that amount? And if you need financing, what forms will suit your plans? Organising money for your business can be done in a few steps: 

• Do you have your own money that you can use?
• Are there any subsidies or schemes you can use?
• Do you need to borrow money? Or find an investor? This is external financing.

Private money

Start with yourself and see how much private money you have and how much of that you want to put into your business. That gives you a starting amount. You will also need this to attract external funding. Usually, financiers also ask that you put your own money into your business.

Subsidies and schemes

No subsidies are available for the actual start-up process of your business. Subsidies for entrepreneurs are mainly available for product development, doing research together, sustainable improvements, and innovative projects. Research possible subsidies and schemes on Business.gov.nl.

Starting with benefits

When starting a business with benefits, always consult your benefit organisation beforehand.
Do you want to start a business and are you currently on social assistance benefit? If so, the financial support for self-employed professionals (Bbz) offers possibilities for supplementing your income and a loan for your business. 

Are you starting with unemployment benefits? There are possibilities to start your business while retaining part of your benefit.  

Are you starting with a wage dispensation for employment of disabled workers (Wajong)? Or a WIA benefit after a long period of illness? Discuss the possibilities with your UWV adviser.

As soon as your business is active, you can use tax schemes. These give you a tax advantage. For example, the tax relief for new companies (startersaftrek).

External funding

To find suitable external financing, you can use the Choosing Financing Tool. By answering a few questions, you can see the forms of financing that best suit your situation. And recognised financiers who offer that financing. 

In addition to the suggested financing types in the Choosing Financing Tool, you may also be able to borrow money from family or friends. This is called a private loan. It is a loan without the involvement of a bank or other lender. Another option for starters is microcredit from Qredits. This organisation offers credit combined with coaching.

Apply for financing

You have found an overview of possible forms of financing and who offers them via the Choosing Financing Tool. Each provider has its own requirements. Check these in advance and then make your financing application. 

The elements of a financing application

With your financing 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. In it, indicate how you will repay the loan amount and when. And what guarantees you can give the financier if repayment fails. In the repayment plan, also consider your private withdrawals or your own salary. After all, you also need to be able to make a living from your business before you can repay the financing. 

Read more about preparing a financing application. Do you need extra help? Find out who can help you write your funding application.

What do financiers pay attention to?

A financier often looks at a starter’s funding application more critically than that of an existing business. The financier goes through your application and divides the information into ‘hard’ and ‘soft’ information.  

The hard information is what a financier can check directly with figures, concrete data, and documents. As a starter, you cannot yet provide figures from previous years. Then you must make do with a realistic forecast. A financier will estimate how likely it is that your forecast will come true. You can back up the forecast with figures from similar businesses and market research.

The soft information is information about you as a starting entrepreneur. Make it clear what knowledge and skills you have that will help you as an entrepreneur. Also show that you are motivated to make your business a success. Financiers also take this information into account in their assessment.

Read more about what financiers look for when assessing your business loan application. 

BMKB

A lender pays attention when assessing whether you have collateral for the loan. Do you not have enough collateral to get a loan? Then the SME Credit Guarantee Scheme (BMKB) can be interesting. This is a scheme of the Dutch government. With the scheme, the government guarantees repayment of part of the loan. You can then borrow more than you would get based on your collateral. Your financier can apply for the BMKB.

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.