Rabobank will link its wealthy customers on a national scale to entrepreneurs who are still looking for financing. That reports Business Insider.
Crowdfunding through the major bank. What started as a temporary trial by Rabobank has now become a national concept. The Rabo&Co platform is intended to link the bank's wealthy customers to entrepreneurs who are still looking for financing. The bank announced this on Monday 8 May.
Rabobank sees the service primarily as a supplement to the bank's own financing and as a supplement to crowdfunding initiatives. In the latter case, different groups of private individuals can contribute to the financing of companies by depositing smaller amounts.
Lending with Rabobank
Wealthy clients of Rabobank who have more than 1 million euros in free capital can participate in Rabo&Co. There are a few rules though. For example, wealthy private individuals may not invest more than 10 percent of their free capital (via Rabo&Co) in business loans.
The idea behind this is that Rabobank always provides 51 percent of the loan. Private customers of the bank may jointly co-finance the project up to a maximum of 49 percent. That same wealthy customer may lend up to a maximum of one hundred thousand euros per entrepreneur.
If an entrepreneur is unable to repay part or at all of his loan, the remainder of the loan is divided between Rabobank and the private lenders.
More than 2 years profitable
Entrepreneurs who want to participate in Rabo&Co must meet a number of requirements. For example, the entrepreneurs must be profitable for more than 2 years. It must also concern refinancing of old loans or expansion financing. The loans have a maximum term of 5 years.
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