More credit options for the business community
Sander Dekker, the Minister for Legal Protection, hopes to give credit provision to businesses a new boost. In practice, the business community and banks have trouble dealing with prohibitions on pledging, which greatly slow credit provision.
'By removing this obstacle, there will be greater opportunities for investment, innovation and growth.'
This is something that both the business community and the banking sector have been hoping for. Prohibitions on pledging are regularly included in contracts that businesses conclude with one another, because businesses hope to avoid having to deal with unknown debtors who suddenly present themselves.
However, the result is that the debts cannot be pledged to banks and factoring companies as security for credit. This creates an obstacle for credit provision to businesses, and can even lead to their experiencing liquidity problems. This applies particularly to small and medium-sized enterprises. In countries such as Germany and France, debts can be used as security in financial transactions.
'The Netherlands needs to adjust in this sense, since otherwise our competitive position will suffer. Swift action is the way to go.'
Minister Dekker will be consulting with the business community in the coming weeks and will table a legislative proposal this spring.