Business lending since the start of the coronavirus crisis cannot be seen separately from the consequences of that crisis, the impact on credit demand and government measures to support the economy. After the start of the coronavirus crisis in the second quarter of Lending to SMEs has declined since the start of the coronavirus crisis. The amount of new agreements fell by around 15 percent. On the one hand, this was due to a reduced willingness to invest among companies, but on the other hand, banks have tightened the acceptance criteria.

How do you finance real estate if the bank says' no 'to your request for financing?

We've outlined the most common ones below:

Informal investor from your network

An informal investor often takes the form of an individual or a group of individuals in your network. Because these lenders have different assessment criteria than banks, they are sometimes more positive about your issue than your bank. These loans often have a short term with a refinancing moment at the end of the term. Loans through informal investors often have higher interest rates or a significant repayment pressure.

The disadvantage of informal investors is that you happen to have one in your network. If you don't have that, finding an informal investor is quite a job.

Crowdfunding

Crowdfunding is not a new concept. Instead of one financier, you raise funding from multiple investors, who can often invest as little as €100 in your financing request. The advantage of Crowdfunding is that your project is made very accessible to investors by various platforms, making it a bit easier to raise funding. The disadvantage is that the interest rate and repayment pressure often weigh heavily on your liquidity. In addition, you should be happy about ending up on the internet with all your heart and mind. After all, that is necessary to convince 'the crowd' to invest in your application! You can read more about crowdfunding in this comprehensive article.

Peer-to-peer (P2P) lending

Peer-to-peer financing is comparable to informal investors. This is because the funding is provided 1-on-1. However, the financing is not provided by someone you know from your network, but by an unknown investor, who you find via a platform.

Request funding

The P2P platform in the Netherlands: Briqwise

Briqwise is one of the best-known platforms in the Netherlands. At Briqwise, you can quickly and easily do such submit a request. This means that you therefore you can arrange real estate financing for your company without a bank. In addition, real estate is the most important criterion. You can then expect an affordable interest rate of 4.5%. This way, you can always repay without penalty and you have a limited repayment burden. Finally, it is also up to you what the duration may be.

In practice

Briqwise interviewed a number of entrepreneurs who did not obtain financing via the traditional routes, but did receive funding via Briqwise:

Angelique explains:”With the help of a good advisor, everything has been sorted out and we have succeeded in securing the financing. Normally, such a thing is financed from a bank with part of equity. In this case, the bank was unable to fully finance. For that other part, we came into contact with Briqwise. He just looks and tests on aother way and in the end, it worked!”

”Many people have such an entrepreneurial dream, but it often stays that way” asks Linda. ”How can it be that you actually live up to it?” Angelique:”I'm not afraid of a challenge and neither is my husband; we're going on this adventure together. We want to have a very bright future and not think afterwards: “If only we had done it then”.”

As an entrepreneur, you want to build a successful company as quickly as possible, preferably with your own business premises. Or as an (entrepreneurial) investor, you would like to buy a property to make more returns. It is often the bank that presses the brakes. Tightened regulations make financing (with real estate as collateral) by banks complex, time-consuming and sometimes even impossible. And if it works, the repayment obligations are often high and penalty-free repayment is usually not possible.

In our extensive knowledge article you will learn everything you need to know about borrowing business money for real estate for your company. If you come across terms that you don't fully understand, we recommend that you use our handy glossary.

Briqwise offers the solution, with a platform that connects ambitious entrepreneurs and investors. With attractive terms for both. The entrepreneur who realises financing (with his real estate as collateral) through Briqwise does not or hardly has to repay, but can do it at any time and is also penalty-free.