DTIF: Dutch Trade and Investment Fund
The Dutch Trade and Investment Fund (DTIF) is a fund from the Dutch Ministry of Foreign Affairs. DTIF replaces the Faciliteit Opkomende Markten (FOM) en Finance for International Business (FIB).
For Dutch companies only! So if you don’t have a business registered in the Netherlands, DTIF is not for you.
Financing of international investment and export by Dutch companies, in all countries outside the Netherlands, excluding the (mostly developing) countries covered by sister programme Dutch Good Growth Fund (DGGF).
DTIF can finance up to € 15 million by a loan and/or a guarantee. Generally, DTIF requires that at least 51% of the financing requirement is covered by private financing, i.e. provided by the Dutch company and its Financier (generally, its bank). Only in exceptional cases, DTIF can finance up to 100%.
• Loan (generally up to 49% of the total financing requirement, exceptionally up to 100%) and/or guarantee (up to 60% of the amount funded by the Financier/bank).
• In line with market rates for similar financing – the interest rate on the DTIF loan is equal to the interest rate charged by the bank, for instance.
• The Dutch company is financially sound (profitable, good long-term outlook).
• A solid business plan demonstrates capacity to repay the financing.
• In case of a new investment, the Dutch company contributes at least 20% of the financing required in cash; in case of an existing participation, the equity investment of the Dutch company may be considered as well.
• The investment and/or trade cannot alternatively be (fully) financed by commercial sources (read: commercial banks). DTIF is not allowed to compete with commercial financing sources but can only finance where (full) commercial financing is not available – due to a lack of collateral, for instance. DTIF financing cannot replace commercial financing that has already been extended for the same purpose.
• The Dutch company and the investment or export to be financed meet the criteria with regarding to social responsible entrepreneurship as defined by OECD.
Who funds and manages DTIF?
DTIF is funded by the Dutch Ministry of Foreign Affairs and is managed by the Netherlands Enterprise Agency (RVO).
The formal application process starts with a so-called Quickscan. If positively evaluated by RVO, the Applicant will be invited to prepare the Application, which includes a business plan, among many other requirements. The entire process will generally take at least 6 months until first disbursement. DTIF’s financial resources are limited to €79 million only and are disbursed on a first come, first-served basis.
Why work with Advance Consulting?
1. We deal with funding programmes such as DTIF and fund managers such as RVO on a daily basis so we have a deep understanding of how all of this can work in the best interest of your company.
2. Developing bankable business plans and finance applications for international investment projects is our core business.
3. You can benefit from the lessons we learned from other business finance cases, to optimize your proposition.
4. We may be able to advice on alternative or complementary financing options. We also can assist you in meeting the requirements of your bank to participate as Financier.
5. You can engage us on a result basis.
So don’t hesitate to contact us to discuss this opportunity!