The current financing of startups (SUPRGOODS) and the strange savings climate in Belgium.

Crowdlending

We sometimes get the questions why SUPRGOODS is looking for capital through crowdlending.

In the current times the best way to finance a company is using a mix of financing instruments. Our ideal mix is capital from the founders, capital from our customers and the crowd and as last the financing of a bank.

Today, if you apply for any financing at a bank they always want guarantees and look at your capitalisation. The ratio equity financing is very important to them. The higher this number is the more money you can loan.

 

What is so difficult to finance SUPRGOODS? 

First of all the manufacturing of our socks (and t-shirts) is unique that means that suppliers need to adjust their process and machines to our products. That means we have a certain minimum quantity that we need to produce per style and per colour. 

Secondly as we are a fairly new company and seen as a startup we have to pay all costs before any goods are shipped. Our products are all produced in Portugal. 

 

The resistance and risk-averse attitude of the Belgian.

Today we have in Belgium about 278 billion euro's savings on our savings accounts. That is enormous. And each day that money is worth less and less. 

Articles only in Dutch:

Let us explain by this example. Let us assume you have 10.000 euro on your savings account. Today you can buy 4310 breads for that (at 2,32 euro/bread)

Today you get 0,11% yearly interest on your savings account that means that in 2021 you will have 10.011 euro on your bank account.  

Each year the costs to produce a bread increase, last year it was by 1,8%.

The government expect that the inflation in 2020 will be 1,1%. Let us now take the assumption that this will also be for bread (as seen the last 20 years). So a bread will cost next year 2,345 euro.

That means that with your savings of 10.011 you can next year only buy 4269 breads. That is a loss of 41 breads or 1%. After 8 years your money will be worth 10% less.

Each year your money will be worth les and less.   

 

What is now the solution?

Support and help the Belgian companies.

The government created the winwin loan that allows each Flemish citizen to invest his savings in a Belgian company.

If you invest in SUPRGOODS then you get 50 times more return on your savings then you now get from your savings account.

Contact us about it. 

 

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