Hogeschool van Amsterdam

+FinanceLab

SME ADVICE ON STACKED FINANCING:

How the SME adviser solves the financing puzzle

Project

How, with the help of a manageable step-by-step plan, can the financial adviser combine the various finance options available to generate the optimum financing package for the client?

Fifteen companies, two professional associations and two universities of applied science are collaborating on research into the possibilities offered by stacked funding in SME. How can SME advisers give better advice to their SME customers? In the next two years, the initiators at Amsterdam University of Applied Sciences, Utrecht University of Applied Sciences and CrowdfundingHub will carry out this research project together with financial advisers and providers of alternative forms of funding.

Step-by-step plan for the financial advisor

The main goal of this project is to deliver a step-by-step plan that can be used by the financial adviser to make it easier for them to make the right financing combinations to meet the needs of SMEs.

How, with the help of a manageable step-by-step plan, can the financial adviser combine the various finance options available to generate the optimum financing package for the client?

Stacked financing

It has become more difficult for SMEs to borrow money, as banks turn down requests for financing more often than before. This has led to the emergence of alternative forms of financing such as crowdfunding, online working capital, factoring and leasing, which in turn leads to combinations of different financing forms, known as stacked financing. SMEs and their advisers have a great deal of experience with bank loans, but not with this combination of new forms of financing.

At present it costs a lot of time and money to apply for different forms of financing at the same time. Advisers also lack insight into the maze of alternative forms of financing in which new providers regularly emerge and where requirements are periodically changed. And finally, it is completely unclear whether the advice given by an adviser is truly independent. Businesses are unable to effectively assess whether the adviser is actually on their side or is acting in their own financial interests.

This project is led by AUAS researcher Kirsten Rauwerda MiF, professors Dr Frank Jan de Graaf  (the AUAS +FinanceLab), Dr Lex van Teeffelen (Professor Financial-Economic Advice Utrecht UAS) and Ronald Kleverlaan (expert in Alternative Financing).