European boost for financing opportunities for Dutch SMEs

Limited financing opportunities for SMEs in the Netherlands are coming to an end. A European and a Dutch government agency are financing 50% of the SME fund of Brabant's WDL Credit Funds. This creates wider financing opportunities for SMEs.

Impact on society

In recent years, banks have become increasingly automated. In practice, this makes it increasingly difficult for SMEs to get financing through a bank. There is little alternative, while the shortage of SME financing has a solid impact on society. Veghel-based fund manager WDL Credit Funds jumped into this gap in the market. Their WDL SME Fund is one of the few parties in the Netherlands that can finance SMEs on cash flow.

Adding value for the entrepreneur

Bart van der Wielen, CEO WDL Credit Funds: “We are financing specialists, not asset managers or bankers. That makes a world of difference for an entrepreneur. We look for a solution that is good for both the entrepreneur and the investor. We are constantly puzzling for the best solution that fits best legally, financially and on a personal level. Structuring appropriate financing requires a total package of knowledge. We can provide that because we have serious experience from the corporate finance profession.”

So the fact that creating this access to capital helps the economy in the Netherlands is also seen at the European level. Van der Wielen: “We have been busy with this funding for two years, while as a Veghel club we have only existed for three years. Even though we are an SME ourselves, we are therefore seen as a professional party at the European level. Super cool that we get this recognition!”

Call from the House of Representatives

There have been calls from the Lower House and others to develop new initiatives for SME financing, such as an SME marketplace or an SME bank. Van der Wielen: “These plans have been underway for years and we also welcome them. It creates more transparency in the market. But again, this is about standardized financing platforms. The type of financing an SME needs, such as acquisition and growth financing, is precisely tailor-made. And customization simply cannot be standardized.”

Additional funding

The WDL SME fund – in addition to the 50% funding from European and Dutch investors – is also 50% funded by investors. In practice, it means that in the coming months we are going to take care of the other half of fundraising from investors and we will be able to start providing financing to Dutch SMEs from the beginning of next year.

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