How to apply loan to start a company.
5 tips for business credit without annual figures
As a starting entrepreneur it is difficult to get money in the form of a loan or business credit. Banks are currently more critical than ever. There are nevertheless various ways for starting entrepreneurs without annual figures to still get business credit. A few options are described in this article.
1) Approach a regional venture capital company
There are a number of regional venture capital companies that also invest in starting entrepreneurs. They are often looking for start-up companies that have a groundbreaking idea or at least develop a technology that brings a high degree of innovation. Because these parties are financed by the government, they are more willing to take a risk than with a private venture capital company.
2) Fired? Apply for starter credit!
For entrepreneurs who are or are going to be fired, there are also opportunities for the government to get business credit. The UWV can provide starting entrepreneurs.
3) Apply for microcredit
Starting entrepreneurs can also apply for microcredit. Business loans are offered to small entrepreneurs. There is 15 million USD available for loans up to 35,000 USD. This credit is available for small start-ups from all industries; from opening to a store to a hair salon. Interestingly, they are also open to entrepreneurs who have had a negative BKR code in the past.
4) Approach a private venture capital company
Entrepreneurs can also go to private venture capital companies. A number of these parties are active in the Netherlands that focus on ‘early stage’ startups. These are companies that develop a new product / technology and have no profit yet. Stories are known of entrepreneurs who have even had a bankruptcy but have received money from these venture capital companies.
5) Approach a former entrepreneur or someone with a lot of money
Informal investors are another source for entrepreneurs who want to get business credit. These are often former entrepreneurs or private investors who are willing to invest money in starting, promising businesses. The advantage of this source is that they are more flexible than a bank and that they often also bring a lot of experience, knowledge and a network. These people often also enjoy working with starting entrepreneurs and their creative ideas.
In short, even without annual figures it is possible to get business credit. The government can offer support in this, but the business community also offers opportunities despite the current economic climate.