Rabobank offers entrepreneurs financing with wealthy clients.

After a successful trial with entrepreneurs and wealthy clients, Rabobank is now about to launch Rabo & Co. With this online platform, Rabobank brings entrepreneurs who want to borrow money and wealthy bank clients who want to invest together. Rabobank widens the access to finance for entrepreneurs and wealthy clients, the bank offers a new opportunity to use their power. Rabo & Co. complements existing forms of financing, such as regular bank credit and crowdfunding.

Marcel Gerritsen, Principal Finance Business at Rabobank: “Rabobank wants every entrepreneur with a good plan gets funding. Rabo & Co helps. It offers entrepreneurs an addition to an exclusive bank financing. Investor and bank pro rata share of the proceeds of the collateral as an entrepreneur comes into payment problems. For Rabobank, this means that we can provide more loans because the loans partially run through its own balance sheet. Rabobank thus anticipates possible stricter capital requirements resulting from Basel IV.”

In the pilot phase, a number of loans from Rabo & Co were provided. Nieke Martens, Head of Private Banking at Rabobank: “A good balance between supply and demand has been an important success factor. We have experienced during the pilot that with wealthy clients at this time, there is much enthusiasm for this concept. It goes especially to customers who have built up equity in business. They feel connected to the project or objective pursued by the applicant. We decided to introduce a phased Rabo & Co for our wealthy clients. Depending on the speed at which the volume on the platform of Rabo & Co will develop, there will be a growing number of wealthy clients access. In this way, we create an optimal match of supply and demand from the start of the platform.

SIMgroup, a niche company that deals with front-office solutions for the government, is one of the companies which is jointly financed through Rabo & Co. Frank Good, director / owner of SIMgroup “We also see the world of finance changing greatly, it has become less clear. It’s difficult, if you’re not a specialist, to know what is good. I found it enjoyable that I previously could knock at Rabobank. It was familiar to me as a partner that Rabobank held direct to this form of financing.”

With the nationwide rollout of Rabo & Co., it puts Rabobank in the Netherlands a step forward in the innovative financing of entrepreneurs. Where finance marketplace has long been commonplace in the US, UK and China, these are loans in continental Europe are still in its infancy. Other forms of crowdfunding are also not indispensable in the Netherlands. More and more platforms, including differences in target of financing and selection criteria. Managing credit is essential for further growth of crowdfunding. Rabo & Co. is a special form of financing in which wealthy clients subscribe to lend to an entrepreneur and this together with the bank.

See the special Rabo Research on crowdfunding: 
https://economie.rabobank.com/ publications / 2017 / May / crowd-fund ing from-big-crowd-to- private-market /

About Rabo & Co – for and by customers of Rabobank
Wealthy Rabobank clients with more than one million investable assets can provide up to 49% of a loan to entrepreneurs who are clients of Rabobank. The minimum portion that the wealthy client in a loan can provide a single company is € 100,000. Customers may not exceed 10% of their excess capital use Rabo & Co. Rabobank always provide at least 51% of the loan. The yield of the security is distributed in proportion to, a business person might come in payment problems.

Financing applications offered meet certain criteria. So an entrepreneur needs for example, more than two years of positive figures and there must be a re-financing or expansion. The requested loan has a term of five years. Rabo & Co combines the historical strength of the cooperative to the necessary (technological) innovation of tomorrow.

For more information:
Rabobank Press Office, Nanne van Nuenen
06-1309 1795 or  nanne.van.nunen@rabobank.nl

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