1 in 3 Dutch entrepreneurs drop financing bids over complexity

More than one in three enterpreneurs forgo applying for financing because they believe the process will be too difficult, according to new research from the Dutch Chamber of Commerce (KVK).

By reducing the number of Dutch investments, the Dutch economy can be seriously impacted, said Ronald Kleverlaan from the SME Financing Foundation.

KVK business adviser Christiaan Hazelaar told FD that entrepreneurs know they need money but can’t always find the right way to finance their needs. “It is also in the entrepreneur's head,” Hazelaar said. “They have a picture of where the money should go. But a financier also wants to see that money come back.”

According to the FD, nearly half of the entrepreneurs describe applying for financing as “complicated,” with a similarly sized group worried about the financial consequences of making a wrong decision.

According to Hazelaar, that fear could stem from financing not being a part of an entrepreneur's daily jobs. “You only do it now and then,” Hazelaar told AD. "That makes it hard to judge whether you are paying too much, so I understand the concerns.

According to the experts, a wide range of financing options is helpful but leaves many workers confused. "Entrepreneurs often know a lot about running a business but less about financing,” Hazelaar said.