copy the linklink copied!32. The Netherlands
copy the linklink copied!Key factson SME financing
The recovery of the Dutch economy continued in 2018, with GDP showing a year-on-year growth rate of 1.8%, and unemployment decreasing a further 1.3 percentage point to 3.6%, close to the lowest percentage since 20091.
New lending to SMEs stood at EUR 18 billion in 2018. This represents a slight decrease compared to 2017, when it stood at EUR 21 billion. Total outstanding business loans also decreased slightly, from EUR 328 billion in 2017 to EUR 325 billion in 20182.
Bank loans continue to be the main source of external financing for SMEs in the Netherlands. However, according to CPB’s3 2019 policy brief, Dutch SMEs had recourse to bank finance less often than their European counterparts did. On the other hand, the percentage of requested loans that were fully authorised rose from 74% in 2015 to 84% in 2018. The interest rate for SME firms (2-250 employees) is higher than for large firms by 2.0 percentage points (respectively 4.1% and 2.1%). The interest rate for large firms decreased by 40 basis points in 20184.
The sum of venture and growth capital investments in the Netherlands has fluctuated over the last decade with peaks in 2008 (EUR 691 million), 2015 (EUR 788 million), 2017 (the highest point so far with EUR 930 million) and 2018 (EUR 868 million). Since 2014, total private equity investments have not dipped below the EUR 700 million mark.5
The average number of days before receiving a B2B payment was 28 days in 2018, with the average contractual term being 27 days, as was the case in 2017. The average number of days of delay to receive a B2B payment therefore remains 5 days, a decrease from 2015 by one day, and a considerable decrease compared to preceding years. The number of bankruptcies continued to decrease in 2018, with a year-on-year decrease of 4.4%. The number of bankruptcies is at a lower level than in 20076.
Several programmes are in place to support SMEs’ access to finance. These include different guarantee schemes, like the Guarantee Scheme for SMEs (BMKB). Another is Qredits, a microcredit institution, introduced SME loans of various sizes in 2013. Furthermore, the Netherlands is creating a National Promotional Institution named Invest-NL. This institution is due to be established by the end of 2019. The aim of Invest-NL is, among other things, to help SMEs through financing or the development of viable business cases.
copy the linklink copied!SMEs in the national economy
The recovery of the Dutch economy continued in 2018, with GDP showing a year-on-year growth rate of 1.8%, and unemployment decreasing a further 1.3 percentage point to 3.6%, the lowest percentage since 2009.
SMEs comprised 99.8% of all Dutch enterprises and employed 64.2% of the labour force in 20188.
copy the linklink copied!SME lending
The Dutch Central Bank uses loan size (rather than the size of the borrower) to define SME loans. Furthermore, each bank uses its own reporting system, which makes the aggregation of loan data challenging.
New lending to SMEs in 2018 stood at EUR 18 billion, which represents a slight decrease in comparison to 2017, when the indicator stood at EUR 21 billion. Total outstanding business loans decreased from EUR 328 billion in 2017 to EUR 325 billion in 2018.
copy the linklink copied!Credit conditions
Interest rates for SME firms (2-250 employees) are higher than for large firms by 2.0 percentage points. They stand respectively at 4.1% and 2.1%. Interest rates for large firms decreased by 40 basis points in 2018. Collateral requirements for SMEs have increased since 2015, but figures have fluctuated over the years.
The percentage of SMEs seeking loans has fluctuated over the last couple of years between 18% and 24%. The percentage of requested loans authorised in full have risen by one percentage point in 2018, reaching 84%. This percentage is however considerably lower for micro-firms (61%)9.
copy the linklink copied!Alternative sources of SME financing
There was a substantial increase in equity investments in 2014, indicating rising demand from small and large firms alike for this source of financing. The total sum of venture and growth investments was EUR 700 million, albeit fluctuating between EUR 727 million in 2016, EUR 930 million in 2017 and 868 million in 2018.
copy the linklink copied!Other indicators
The average number of days before receiving a B2B payment was 28 days in 2018, with the average contractual term being 27 days, as was the case in 2017. The average number of days of delay to receive a B2B payment therefore remains at 5 days, a decrease from 2015 by one day, and a considerable decrease compared to preceding years.
The number of bankruptcies continued to decrease in 2018, with a year-on-year decrease of 4.47%. The number of bankruptcies has dipped below its 2007 level. In fact, compared to 2013, the number has more than halved, decreasing from 8 376 to 3 144 in 2018.
copy the linklink copied!Government policy response
After a decline in government loan guarantees in 2010-2013, volumes increased to EUR 710 million in 2016, only to drop to EUR 646 million in 2017 and EUR 643 million in 2018. The 2010-2013 decrease can mainly be attributed to a decrease in demand by SMEs (due to a delay in investments), and stricter credit standards from banks, which led to a reduction in the size of some of the loan facilities (BMKB, GO and Gowth Facility) offered.
The Guarantee Scheme for SMEs (BMKB)10 helps SMEs that have a shortage in collateral to obtain credit from banks. The state guarantees the loan segment for which collateral is lacking and thereby lowers the risk for banks. Banks were more willing to provide a loan if that loan was partially guaranteed. In 2015, the scheme guaranteed a maximum amount of EUR 1.5 million, 67.5% of the loan for start-ups and for small credit requests, 60% of the loan for innovative firms, and 45% of the loan for existing companies.
The Guarantee for Entrepreneurial Finance (GO)11 was launched in March 2009. It provides banks with a 50% guarantee on new bank loans, ranging from EUR 1.5 million to EUR 150 million. GO thus substantially lowers the risk for banks issuing credit to entrepreneurs.
In 2013, the government introduced a fund of funds for later-stage venture capital investments in cooperation with the European Investment Fund (EIF). Together with banks, the government is promoting the diffusion of information to SMEs with regard to these types of instruments. In April 2014, a credit desk was established for entrepreneurs as a central information point for financial questions.
In 2009, a successful microcredit institution, Qredits12, was launched, supported by the government and national banks. In December 2013, Qredits introduced SME loans (EUR 50 000 - EUR 150 000). The maximum loan amount was increased to EUR 250 0000 in November 2014. Since June 2016, Qredits also offers flexible loans up to EUR 25 000 for entrepreneurs who need working capital finance. Qredits also developed a programme that provides coaching and advice to micro-entrepreneurs. The government supported this initiative financially during the 2010-14 period.
In October 2015, the NLII (Dutch Investment Institution) was founded by a group of Dutch institutional investors. However, the NLII was discontinued in 2018 because the NLII could not identify investment opportunities for institutional investors. These investors will continue with the NLII subordinated loan fund of EUR 300 million and the NLII Business loan fund of EUR 960 million.
Currently, several instruments for the financing of innovation are in place. Among them are seed capital13, regional development agencies, a business angel co-investment fund and proof-of-concept funding14. Under the seed capital instrument, funds are issued to investment funds that mainly invest in tech start-ups. The task of the regional development agencies (ROMs) is to boost business development, innovation and investments. They do so by taking shares in innovative companies. Additionally, they attempt to attract foreign companies in order to foster innovation and employment. The business angel co-investment fund selects several business angels to co-invest with. The selected business angels choose the companies to invest in. Several facilities for proof of concept financing and later stage financing are also offered. For example, DVI15 16 i.e. the Dutch Venture Initiative takes minority interests in later stage venture capital firms. With proof-of-concept funding, start-ups and SMEs can use loans from the funding scheme to examine whether their idea is feasible on the market.
References
Centraal Bureau voor de Statistiek (Statistics Netherlands) 2019, Number of banktruptcies 2018, available at
https://opendata.cbs.nl/statline/#/CBS/nl/dataset/82242NED/table?ts=1559560484040
Centraal Planbureau 2019, Macro economische verkenning 2019, available at
https://www.cpb.nl/sites/default/files/omnidownload/Macro-Economische-Verkenning-MEV-2019.pdf
De Nederlandsche Bank (Dutch Central Bank) 2019, Loans to SMEs 2018, available at
https://statistiek.dnb.nl/en/downloads/index.aspx#/
European Commission 2019, SBA Factsheet 2018, available at
https://ec.europa.eu/docsroom/documents/32581/attachments/21/translations/en/renditions/native
NVP (Dutch private equity and venture capital association) 2019, Annual results, and trend reports 2018 available at
https://www.investeurope.eu/media/811517/invest-europe-2018-european-private-equity-activity.pdf
Centraal Bureau voor de Statistiek (Statistics Netherlands) 2019, Financemonitor 2018 available at
https://www.cbs.nl/nl-nl/maatwerk/2019/05/financieringsmonitor-2018
Centraal Planbureau (Netherlands Bureau for Economic Policy Analysis), 2019, Dutch SME bank financing, from a European perspective 2019 available at
https://www.cpb.nl/sites/default/files/omnidownload/Policy%20Brief%20SME%2009072019_0.pdf
Notes
← 1. Macro Economische Verkenningen (MEV) 2019, page 25, Centraal Economisch Plan en CPB 2019 https://www.cpb.nl/sites/default/files/omnidownload/Kerngegevenstabel%202017-2020%2C%20plus%20koopkracht_0.pdf
https://opendata.cbs.nl/statline/#/CBS/nl/dataset/80590ned/table?ts=1533886271304 (Unemployment as percentage of the Dutch labour force, ‘national definition’). This percentage is from December 2018.
← 2. See Netherlands Mastercoreboard 2018, from dnb data tables: t5.14 and t5.2.7.4
← 3. CPB Policy brief on Dutch SME bank financing, from a European perspective 2019. This policy brief confirms that Dutch SMEs are applying for relatively few bank loans, and that those applications are relatively often rejected by the banks. This applies to all businesses but more so to SMEs. The 2009–2018 period shows a steady trend, although in recent years the difference with the eurozone average number of applications has grown, while for the number of rejections the difference has decreased.
https://www.cpb.nl/sites/default/files/omnidownload/Policy%20Brief%20SME%2009072019_0.pdf
← 4. See Netherlands Mastercoreboard 2018, from Financemonitor (CBS) 2018 and https://dashboards.cbs.nl/v1/financieringsmonitor2018_180023/
← 5. The method of calculating the sum of venture and growth capital investments has changed compared to last year. Therefore, earlier figures have been updated.
← 6. See Netherlands Mastercoreboard 2018, from Intrum Justitia Report 2018, page 4 and Financemonitor (CBS) 2018.
← 7. There is a break in the time series. See definitions of asset-based indicators below.
← 8. See Netherlands-2018 SBA Factsheet EU Commission Report page 2. The labour force in 2018 for SME’s is 3 679 923.
← 9. See Financemonitor 2018 (CBS), page 4.
← 10. See: https://www.rvo.nl/subsidies-regelingen/borgstelling-mkb-kredieten-bmkb
← 11. See: https://www.rvo.nl/subsidies-regelingen/garantie-ondernemingsfinanciering-go
← 12. See: https://qredits.nl/over-qredits/wie-is-qredits/
← 13. See: https://www.rvo.nl/subsidies-regelingen/seed-capital
← 14. See: https://www.rvo.nl/subsidies-regelingen/vroegefasefinanciering-vff
← 15. See: https://www.eif.org/what_we_do/resources/dvi/
← 16. See: https://www.eif.org/what_we_do/resources/dvi-II/index.htm
Metadata, Legal and Rights
https://doi.org/10.1787/061fe03d-en
© OECD 2020
The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at http://www.oecd.org/termsandconditions.