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In the Netherlands, Flexible Funding is currently available as a revolving credit line, which gives you ongoing access to funds within your approved limit.

A credit limit is the maximum amount of credit approved for you, which you can utilize. The lender may adjust the limit up or down at its discretion following periodic reviews of financial standing, creditworthiness, and compliance. Any changes will be communicated immediately.

No, you can activate it and use it only when needed. Interest is paid only on the amount you borrow through the credit line.

There are two types of costs associated with a credit line:

- Credit repayment (incl. interest) - weekly annuity credit repayments, covering both the principal and interest.

- Credit limit fee – a fixed fee paid monthly for the use of the Finom platform for credit line maintenance.

Repayments are made on a weekly annuity basis, with fixed amounts automatically debited from your wallet. Each withdrawal is scheduled for repayment over six months (26 weeks), covering both principal and interest.

The limit fee is paid at the end of each month as part of the platform subscription fees.

It’s a fixed fee paid monthly for the use of the Finom platform for credit line maintenance. This fee covers the costs of maintaining the credit product and reserving funds for you, guaranteeing they remain available whenever you need them (in accordance with terms and conditions).

If you decide to close your credit line within the first three months, the limit fee for this entire period will apply.

The principal is the original amount of money borrowed from a lender before interest is applied. In the case of a credit line, the principal refers to the total amount withdrawn by the borrower.

Interest is the cost of borrowing money. It is the amount a borrower pays to the lender in exchange for using the funds.

An interest rate is the annual cost of borrowing money, expressed as a percentage of the total amount borrowed. In a credit line, interest is only charged on the amount withdrawn, not on the total approved limit. The monthly interest rate is calculated as the annual rate divided by 12.
 

Interest is calculated daily, starting from the next day after withdrawal. Every week, you pay an annuity credit repayment, including interest and part of the principal.

For example, if your credit line has a monthly interest rate of 1.25%, withdrawing €1,000 on Tuesday would result in a total repayment of €1,039.75 over six months, paid on Wednesdays.

A revolving credit line allows you to borrow money up to a specified limit, repay it, and borrow again as needed. You pay interest on the amount you withdraw, and as you repay, your available credit funds replenish, giving you continuous access to funds.

A traditional loan provides a lump sum upfront with fixed repayment terms, whereas a credit line enables borrowers to access funds as needed, repay them, and borrow again within the agreed terms.

The credit line is offered indefinitely with a repayment period of six months for any withdrawn amount. The lender reserves the right to modify the credit line limit and access based on periodic reviews of financial status, creditworthiness, and compliance, with prompt notification of any changes.

Yes, borrowers can use funds for various business purposes, such as operational expenses, inventory purchases, expanding business, or unforeseen expenses.

However, the credit line should not be used for:

- Debt refinancing or repaying other loans
- Illegal activities or any prohibited transactions, incl. sanctioned counterparties and unacceptable jurisdictions
- Personal expenses, i.e. not business-related