The commercial term loan is the most common financing instrument for multi-year capital expenditure: plant and machinery, building refurbishments, proprietary software development or acquiring a customer portfolio. You borrow a lump sum upfront and repay it across an agreed amortisation schedule.
- Fixed monthly repayments, providing predictable cash flows
- Loan term matched to the economic lifespan of the asset
- Can be combined with government guarantee schemes and regional programmes
What do underwriters look for?
Lenders assess three fundamentals: cash flow, security and conduct. Cash flow determines whether you can service the debt — typically assessed via the debt service coverage ratio (DSCR). Security establishes recovery options should things go wrong. Conduct reflects your credit history, tax compliance discipline and the quality of your management accounts.
- Up-to-date statutory accounts and interim management figures
- Cash flow forecast covering a minimum of 12 months
- Documented business case setting out the investment and projected return
- Schedule of existing debt facilities and pledged security
Bank or non-bank lending?
A traditional bank is usually the cheapest option, but enforces stricter underwriting criteria and involves longer turnaround times. Non-bank providers — credit unions, direct lending funds, alternative finance platforms — offer greater speed and flexibility, though this is priced into their margins. For many business owners across the region, a blended structure is ideal: a bank facility covering core long-term debt, paired with an agile non-bank facility for working capital.
Frequently asked questions
Can I settle a commercial loan early?
Generally yes, though fixed-rate loans may incur early repayment charges (break costs). Non-bank lenders more commonly apply a fixed exit fee or permit penalty-free early repayment. Ensure this clause is explicitly clarified prior to signing.
What is a government-guaranteed loan (borgstellingskrediet)?
Where collateral is insufficient, the Dutch government can guarantee a portion of the loan via a state guarantee scheme (such as BMKB / borgstellingskrediet). This lowers the lender's exposure and unlocks financing that would otherwise fail credit assessment.