Finance

Pre-financing & Guarantee Fund

The Pre-financing & Guarantee Fund already exists for more than 25 years and is an initiative of the Netherlands Board for Tourism & Conventions (NBTC), the Ministry of Economic Affairs and around twenty different organisations from the congress branch. The Pre-financing & Guarantee Fund offers organizers of international, multi-day congress in the Netherlands more financial stability. The fund helps congress organizers to cover the financial risks and serves as a balance to get initiatives started.

The Pre-financing & Guarantee Fund combines two arrangements: a pre-financing regulation and a guarantee fund. The two arrangements can be used separately and combined.

Pre-financing regulation

In the months up to a congress an organizers has to deal with a lot of different aspects of an event which cost money. Think about the costs for the founding of a fund, a deposit for accommodation or expenses for marketing tools as a brochure, announcement or website. Because the registration fee will be cashed later the organizer can’t always afford the initial costs. The Pre-financing regulation makes sure that those cost can be met. The organizers can get a free and interest-free loan through the pre-financing regulation. It’s like a subsidy arrangement for congresses. The loan consists a maximum sum of €90.000 and depends on the size of the congress and the prognoses of the liquidity.

Guarantee fund

A congress budget knows a cost and benefit side. Because of the expertise, knowledge and experience of the organizer and the stable infrastructure of the congress branch the cost side has a limited amount of risks. The benefits, on the other hand, are less certain.  The biggest part of the benefits (regardless of the sponsors) has to come from the registration fee of the delegates. This is the biggest risks. If the amount of participants is not up to standards it will effect the income and with that the budget for the congress.

To minimize the risk the Pre-financing & Guarantee Fund offers a guarantee. It’s like a congress or event insurance, with which the organizer can continue the event, even when there aren’t enough participants. The maximum amount of the loan is €90.000 and depends on different aspects, like the size of the congress, the history of the event, the amount of sponsors and the budget. On top of that it is required that the budget has to be expertly prepared.

You can find more information about the prerequisite and possibility’s of the Pre-financing & Guarantee Fund on www.vgfholland.nl/en/. You can use the contact form on the website of the Pre-financing & Guarantee Fund for a quotation request.

The Pre-financing & Guarantee Fund works together closely with the Netherlands Board for Tourism & Conventions. You can contact them via the phone number: +31 (0)70 370 57 05 or send an e-mail to:  info@vgfholland.nl.