1. Bank loan
A traditional loan from a bank is usually for a fixed amount over a fixed term. Banks offer competitive rates but are cautious: they want a solid business plan, forecasts, a track record and often some security. It becomes easier once your business is established.
2. Microloan
A Dutch microfinance provider lends to starters and small businesses who struggle to get a regular bank loan. The loans are smaller, and you also get coaching. It is often the first place new entrepreneurs try.
3. Business credit line
You use this facility as needed, up to a limit, and pay interest only on what you use. It is suitable for short cashflow gaps. For a big one-off investment, choose another option.
4. Leasing
For equipment or vehicles, you can lease an asset and pay for it in instalments. "Operational lease" is like renting. "Financial lease" is more like buying on credit. You keep your cash, but in total you usually pay more.
5. Alternative finance
Crowdfunding (many small backers), invoice financing (advancing money against unpaid invoices), and private investors are all options. They can be faster or more flexible than a bank, but watch the cost and conditions.
How to make the choice
| Need | Best choice |
|---|---|
| Startup capital with a blank track record | Microloan |
| Established business, larger sum | Bank loan |
| Short cashflow gaps | Credit line |
| Equipment or vehicles | Leasing |
Further reading
See also Crowdfunding for Your Business, Making a Budget for Your Business and Exit Options for Dutch Business Owners.