How easy is it to borrow money from a bank?
Can SME’s easily borrow money?
In 2016 the amount of Flemish companies seeking help from a credit
intermediary has increased with 43 percent according to NSZ Belgium. More and
more companies are trying to get a loan from the bank now interest rates are
low. Only 1 out of 6 are being denied of a loan which is surprisingly low especially
when Europe has tightened its rules on lending money to prevent another crisis.
However we see that in Belgium the older companies are doing great but the start-ups are having difficulties.
Since 2009 companies in Belgium can seek
help from a credit intermediary. He will help both parties, the company and the
bank, to reach an agreement. First of all the credit intermediary will
investigate the reason behind the denial of finance. Secondly he will try and
find alternatives like leasing to help companies achieve their goals.
Most common reasons for denying a loan are
insufficient capital, debts or insufficient power to repay. However, banks
still have prejudices with certain sectors they deem unstable and don’t offer
alternatives. The investor is left for dead.
Although not many people know about the
services provided by the credit intermediary, 76 percent of the cases with
banks were closed with a positive note.
For more information on the credit intermediary
visit the site:
For requesting help from a Belgium credit
intermediary: http://www.vlaio.be/maatregel/vlaamse-kredietbemiddelaar#index-3
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