Dutch Prime SME

Dutch Prime SME

Unlocking the prime small and medium enterprises (SME) loans segment for institutional investors that is currently underserved by traditional banks.

  • Offering institutional investors exposure to solid Dutch SMEs
  • Matching funding and borrowers with a transparent and straightforward SME lending platform
  • A unique and scalable strategy to finance Dutch economic growth

The Dynamic Credit SME lending platform focuses on Dutch Prime SMEs, and is competing with traditional bank lending products. The target businesses have strong balance sheets and positive cash flow generation, and are traditionally banking clients. However, the segment of Dutch Prime SMEs requesting smaller loan sizes are currently being underserved by banks, as they tend to focus on large loan sizes. In practice, a gap between loan supply and demand can be observed for smaller businesses and smaller loan sizes. As a result, underwriting criteria and loan conditions remain strict and interest rates elevated. Dynamic Credit will bridge this gap with a transparent and straightforward SME lending platform.

Making SME lending more predictable, transparent and efficient

Dynamic Credit has leveraged its in-house direct lending expertise to transform the loan application process for SME borrowers making it more predictable, transparent and efficient. For investors, this opens a rare and unique opportunity to invest in a new asset class providing quality loans to Dutch SMEs, helping the Dutch economy flourish. New competition to challenge the traditional banks is needed, as the Netherlands ranks on a poor 21st place on the Access to Debt Finance Index from the European Investment Fund. Despite a growing economy, traditional lenders are not increasing their lending activities to the SME sector. Due to operational and regulatory (capital) pressures they seem to favour lending to larger companies in larger loan sizes.

Smart, strict and speedy underwriting

Dynamic Credit targets a diversified and highly granular SME loan exposure for investors. We focus on originating relatively small loan sizes from a broad range of sectors and well-spread across the Netherlands. Given our strict underwriting criteria we expect the bulk of our portfolio to be composed of (implied) Baa and Ba-rated companies. Dynamic Credit uses data-driven decision-making combined with dedicated and experienced SME specialists to evaluate the loans in the underwriting process. Business receive an indicative offer within two days.

We firmly believe that the Dutch Prime SME segment offers institutional investors significant added value in a risk-controlled environment. Our platform provides a unique and scalable strategy to finance the real Dutch economy. We invite investors to contact us to discuss how we can open this new frontier in fixed income investments for them.

Portfolio Manager

Jasper Koops
Jasper Koops - Head of Portfolio Management Direct Lending

Are you interested in our services?

Get in touch. Bart will be happy to answer any questions you might have.

Bart van der Noord - Institutional Sales
Bart van der Noord
Bart van der Noord