Invest International expands the options for export financing of small transactions for Dutch SMEs and doubles the budget with €30 million to €60 million. The additional facility was presented today in the presence of the minister of Foreign Trade and Development Cooperation Geoffrey van Leeuwen, the chairman of MKB-Nederland Jacco Vonhof and Dutch entrepreneurs that already make use of the facility. In addition to increasing the export budget, it is now also possible to finance associated working capital.
The additional payment into the special SME export fund has been made because the demand from entrepreneurs is greater than anticipated. There are hundreds of applications from Dutch entrepreneurs who want to export, but cannot obtain the right financing solution for their export transaction.
The facility Invest International executes together with OHV Vermogensbeheer and Atradius Dutch State Business concerns export financing of capital goods, such as machines, equipment and means of transport. With this export facility, Invest International ensures that this financing gap is closed and that companies can find financing for small export transactions from € 100,000 to approximately € 5 million that are no longer profitable for regular financiers.
Joost Oorthuizen, CEO of Invest International: “It is good that Dutch SMEs know where to find us. International trade strengthens the competitive position of Dutch companies. At least 67 percent of Dutch exports come from SMEs. Previously, Dutch SMEs could often do business with their own Dutch banks. But that has become much more difficult. A shrinking international office network and increasingly strict requirements make it difficult for these banks to finance the often smaller export transactions of SMEs. This is an issue that is increasingly being seen by the government and financial sector. We are working ourselves and together with other parties in the context of the SME Financing Agreement (in Dutch: Convenant mkb financiering what was recently signed) to resolve this important issue, in order to put the SME financing climate back at the forefront of Europe. As Invest International, we contribute to solving the financing of SMEs’ foreign activities, both for exports and investments, thus to improve the competitive position of the Netherlands.”
Geoffrey van Leeuwen, Minister for Foreign Trade and Development Cooperation: “The Netherlands is one of the most innovative countries in the world and we owe this largely to the strength of our SMEs. At the same time, there are major challenges in the world, such as climate change. There are certainly opportunities for the Dutch business community that can help with a solution. That is the core of my policy: helping Dutch entrepreneurs succeed abroad. Because aid and trade reinforce each other. We know that it is sometimes difficult for SME entrepreneurs to get international projects financed. That is why I welcome the fact that additional money is once again being made available by Invest International, OHV and Atradius. This will enable even more Dutch entrepreneurs to invest in developing countries.”
Photos: © Wilmar Dik Photography.
Chairman Jacco Vonhof of MKB-Nederland: “I am happy with the expanded opportunities Invest International offers exporting SMEs. The Netherlands is one of the most open economies in the world. We earn a third of our national income across the borders and SMEs – with more than 120,000 exporting companies – account for a large part of this. Good export financing is crucial for all these entrepreneurs, but the options for this are limited and the costs are often relatively high. Just like SME financing in general, the biggest problem is with small loans, up to a maximum of 1 million euros. So it is very good that Invest International is stepping into that gap and significantly increasing the budget of the scheme in question.”
The export financing solution that Invest International launched last year together with partners OHV Vermogensbeheer and Atradius Dutch State Business clearly closes the gap in the market for smaller capital goods transactions. By joining forces with OHV, which carries out the transactions, and Atradius Dutch State Business, taking care of the credit insurance, an innovative and efficient construction has been created from which companies and their customers benefit.Read more on export finance for SMEs
Invest International offers a wide range of financing solutions for international activities of SMEs in addition to the market. Next to export financing, Invest International offers financing solutions such as investment loans for foreign investments of start-up and established SMEs.