A rapidly changing financing landscape; alternative forms of financing and increasing digitization and automation are changing the financing process. In addition, searching for and obtaining the right financing is not exactly a task they look forward to for most entrepreneurs. What does this actually mean for the role of the financial advisor?
The financing need in figures
In the Netherlands, about 14 percent of all self-employed persons have an investment or financing need. The same applies to more than a quarter (27 percent) of all SMEs. Research . by the Chamber of Commerce shows that entrepreneurs have this financing need because they want to invest in business assets, working capital or starting a business
When entrepreneurs look at how to finance their investment, advice is usually sought from the bank. That is what 51 percent of entrepreneurs do. In addition, 46% of the entrepreneurs look online, followed by the financial advisor, accountant and bookkeeper respectively.
Choice of financing
Which form of financing the entrepreneur chooses is mainly based on the costs and the interest rate. They also find it important that they understand the financing. At the same time, the research shows that there are many forms of financing that are unknown. This concerns, for example, credit unions, regional development companies and online payday loans.
The financial advisor
The aforementioned changes in the financing landscape on the one hand and the needs of the entrepreneur on the other make the expectations with regard to the advisor clear; making the different forms of financing understandable.
This role is becoming increasingly important. There are more and more alternative financiers, each with their own characteristic financing products. As a consultant you can help the entrepreneur by explaining what these forms mean for the entrepreneur and of course also showing the way in an ever-growing financing forest. It is therefore becoming more important for advisers to position themselves as the financing specialist who can point out a wider range of options to the entrepreneur than the bank can do.
Fyndoo Advise can help you develop a financing plan. Fast and clear. Curious how? Contact us , we will be happy to help you!