Dutch financial sector reports on SME credit barriers and private equity influence

A study by SEO, commissioned by the Dutch Ministry of Economic Affairs and Climate Policy, indicates that primary banks may hinder small and medium-sized enterprises (SMEs) from obtaining additional financing. Through the use of collective security deeds, banks often pledge not only existing but also future business assets. This can leave entrepreneurs with no available collateral for subsequent lenders, even if asset values have increased or original loans have been significantly repaid.

While hard data on how many entrepreneurs are blocked is unavailable, an indicative calculation suggests that removing these barriers could unlock between €12 million and €265 million in annual SME credit. Some crowdfunding platforms report that this issue affects approximately 25% of their applications.

Separately, the Dutch Authority for the Financial Markets (AFM) has released an exploration showing that private equity finances about a quarter of the 500 largest advisory and mediation platforms in the Netherlands. These firms represent roughly 20% of the total Dutch advisory market, particularly within insurance intermediaries. While the AFM notes that private equity can drive technological innovation and solve succession issues, it warns that a focus on high returns and future sales could potentially compromise service quality and client interests.