Using FinTech for your company

What is FinTech?

FinTech is a combination of the words 'financial' and 'technology'. FinTech companies combine financial services and products with innovative technology. This enables them to quickly provide online credit to  entrepreneurs.

The usual paperwork is skipped as much as possible. This speeds up the funding application. Smart data analysis automatically estimates your creditworthiness and your risk profile. Often this process is done with your business bank statements. FinTech companies are modern additions or alternatives to traditional banks, asset managers and insurers.

What good is FinTech to you?

FinTech companies want to help you in a way that suits the rapidly changing times: using smart technology and digital platforms. You can apply for and receive a credit online with only a few clicks. If you use FinTech for more financial room, these are the advantages:

• fast online application, and the money is in your account within 24 hours.
• apply without a business plan or annual figures.
• access to more working capital.
• high acceptance and high limit.

Where can you go?

The following lenders have the Certified SME Financier quality mark (all in Dutch):

• Factoring: do you want an advance on existing debtors? These are the parties: Voldaan, FreelanceFactoring, and Svea Finans.
• Looking for crowdfunding? The platforms: Collin Crowdfund, Geldvoorelkaar, Voordegroei, Invesdor, and NLInvesteert.
• Take out a business loan? Direct lending via: Qredits, Pin Voorschot, OPR Flex bedrijfskrediet, Swishfund, Bridgefund, and Yeaz!.
• For property finance: Mogelijk.nl.
• Apply for the SME stock exchange? Financing by (institutional) investors: NPEX.

The FinTech companies mentioned here are affiliated with the SME Financing Foundation. Banks have their own FinTech channels:

• New10 (ABN AMRO, in Dutch)
• Fundr (Rabobank, in Dutch)

Is it safe?

You usually take out Fintech products with a party other than a bank. And costs are often higher with non-bank financing than with bank financing. This is because non-bank lenders incur higher costs when offering financing. Access to capital is more expensive for them than for banks. In addition, they have a customer group with greater uncertainty about the repayment of the financing. And non-bank providers have fewer guarantees to get their money back if their customers cannot repay.

Tips financing with fintech

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 has a guideline of maximum 20% per year for costs including interest. This foundation has a quality mark for affiliated financiers (in Dutch) and financial advisers (in Dutch). With annual audits and training modules, the affiliated parties and financiers are bound by a code of conduct. Quality in service is paramount. The Kifid complaints desk intervenes in disputes between financier and entrepreneur. Learn more about the code of conduct (in Dutch).
• Compare offers from 3 financiers to make a well-considered choice.
• Read the small print of the credit proposal. An understandable contract, a seal of approval, and membership of a sector organisation will help in your choice. A seal of approval and membership of a sector organisation ensure that financiers must follow the rules of a code of conduct. The code of conduct requires them to be clear during the financing process.

Financial Supervision Act (Wft)

The Dutch government supervises financial institutions such as banks and insurers and the entire financial system. This protects consumers and businesses that entrust their money to these institutions. The method of supervision is regulated in the Financial Supervision Act (Wft, Wet op het financieel toezicht). The Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) carry out supervision.