According to Dirkjan Takke, director of the investment platform NLInvesteert, entrepreneurs continue to invest, despite high energy prices and rising interest rates. “To get money, they often have to look for non-banking solutions.”
While there seems to be some light at the end of the tunnel lately, these have not been the easiest months for entrepreneurs: high commodity prices, expensive energy and interest rates that continue to rise.
However, none of this has proved to be an obstacle for Dutch entrepreneurs to keep investing. This is evident from the annual data from NLInvesteert. “Entrepreneurs continue to see opportunities despite challenging circumstances,” Takke summarizes the figures.
Banks don’t want to take risks
A notable evolution is that companies no longer always obtain the necessary money through traditional banking, a consequence of banks not wanting to take too great risks. This trend has already been shown by data from Statistics Netherlands.
“A bank often wants to first see equity capital, such as a subordinated loan, before wanting to step in on its own,” Takke says. ‘Banks still have the cheapest money, but they have to meet tougher requirements. That’s why they started behaving differently.’ As a result, their social role of taking the lead in investing is also crumbling. “Non-bank financiers are now picking up that gauntlet more often.”
Businesses in the Netherlands have to adapt to this new situation, says Takke. ‘Entrepreneurs usually end up with a combination of a bank loan and a private investment, for example from family. ‘But such a mix often works. Even in terms of interest expense.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
